KEAP APRIL 10, 2014
The Keene Energy and Agriculture Project PROPOSAL AND RESPONSE TO REQUEST FOR PROPOSALS NO. 02-14-08
KEENE ENERGY AND AGRICULTURE PROJECT SUSTAINABLE ENERGY-FOOD PROJECT DEVELOPMENT OPPORTUNITY PREPARED FOR THE CITY OF KEENE DEPARTMENT OF PUBLIC WORKS - SOLID WASTE DIVISION PREPARED BY DON MCCORMICK & THE LOCAL FARMS PROJECT
Proposal for the Keene Energy & Agriculture Project prepared by Local Farms Project, for City of Keene Department of Public Works - Solid Waste Division Issued 04.10.2014
April 10, 2014 Mr. Duncan Watson Assistant Public Works Director City of Keene 350 Marlboro Street Keene, NH 03431 RE:
Proposal – Keene Energy and Agriculture Project REQUEST FOR PROPOSALS RFP No. 02-14-08
Dear Duncan: We are very pleased to present our proposal for the development of the Keene Energy and Agriculture Project. This initiative is the culmination of a life’s work, merging our team’s ideals, ideas and integrated skills -- honed over years of advances in our respective fields -- and celebrating our collective passion for sustainability. The Keene Energy and Agriculture Project, as we propose to grow it, is the fulfillment of a dozen years of planning and research for this specific design. Distinguished by rigorous engineering, business planning and operational experience, this project has groundbreaking grassroots potential: a one-of-a-kind energy conversion system with myriad applications for sustainable global good. In forming this public-private partnership with the Local Farms Project, the City of Keene demonstrates its forward-thinking leadership by developing a completely original local food and energy project -- simultaneously practical and innovative for business, for the community, and for the environment. Ultimately, the Local Farms Project proposes to turn a city loss into a gain that will create quality jobs, fresh year-round produce, economic opportunities, and the promotion of a healthy environment. My team and I are proud and grateful for this opportunity to present our proposal to the City of Keene, New Hampshire for the development and operation of the Keene Energy and Agriculture Project.
Don McCormick President The Local Farms Project
Proposal Keene Energy and Agriculture Project 04.10.2014
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PROPOSAL SUBMISSION Note:
Please return this page as a cover sheet with each copy of your submittal.
The undersigned, an authorized agent of his/her company, hereby certifies: ( x)
familiarization with all terms, conditions, and specifications herein stated;
( x)
vendor is qualified to perform work and services as included;
( x)
October 10, 2015 That the pricing contained in this submittal is valid until ______________(date).
Respectfully submitted
____________ Authorized Signature
The Local Farms Project
Rik Ekstrom
Company Name
Printed Name of Individual Signing Proposal
25 Broadway
Director of Development
Address 1
Title
9th Floor
917-796-1175
Address 2
Telephone
New York, NY 10004
City, State and Zip Code 04/10/2014
Date Submitted
Fax Number rik.ekstrom@are-a.net __
E-Mail Address
Person signing proposal must be a person in your company authorized to sign a contract with the City of Keene.
( )
We are not submitting a proposal for this project, however, please retain our company information listed above in your vendor files and continue to send us bids and proposals in the future.
- For City Use Only -
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Contact data updated to include the above-captioned vendor information.
City of Keene, NH
RFP No. 02-14-08
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PROPOSAL FOR THE KEENE ENERGY AND AGRICULTURE PROJECT TABLE OF CONTENTS
01 02 03
INTRODUCTION & EXECUTIVE SUMMARY
04
KEAP MARKETING PLAN
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REGULATORY COMPLIANCE, OPERATIONS & MANAGEMENT
06
LEAD DEVELOPMENT & OPERATING STAFF
07
PROJECT TIMELINE
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SUPPORTING DOCUMENTATION
PROJECT DESIGN & DEVELOPMENT APPROACH PROJECT OPERATION & FINANCIAL PLAN
Proposal Keene Energy and Agriculture Project 04.10.2014
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New Hampshire farms once grew the food for New Hampshire families and will, again, as we reduce our dependence on fossil fuels and reclaim our local resources. Yankee thrift, wisdom, and ingenuity combined with 21st Century engineering, technology, and common sense - will spark a transformation and an ongoing independence for generations to come.
INTRODUCTION & EXECUTIVE SUMMARY
The Keene Energy Agriculture Project (KEAP) is a unique concept in resource up-cycling -- an economically, environmentally, and socially exceptional business model. Connecting established technologies and best-of-breed equipment, Integrated Food Energy Systems (IFES) solve a pressing and increasingly global need. The KEAP facility will capture and transform waste resources to build and power local food and energy systems. In the summer of 2009, Don McCormick and the City of Keene, NH, began co-developing plans for an unprecedented integrated food and energy system that produces renewable heat and power from waste resources to sustainably grow food year-round, on a commercial scale, eliminating the need for fossil fuels and actually reducing greenhouse gasses – hence, a carbon negative facility. The efficiency gained by maximizing the return on inputs, as well as eliminating waste, creates a scalable and replicable business model for local food and energy; a grass roots movement with the potential for worldwide application. In fact, KEAP was so forward thinking in its approach that it was awarded a $500,000 EPA grant from the prestigious Climate Showcase Communities Program. Several years of development and demonstration of each operating element and design principal have led up to this moment. It is now time to bring the proven components and one-of-a kind design together in Keene, NH, in a public-private partnership that generates local food and energy security, environmental stewardship, and a variety of quality jobs to the entire community. Critically, it will prove to be a rewarding business to the owners, investors, and operators of KEAP, an ideal model for communities across the country and around the world. This business plan and the correlative marketing plan, financial model, and site plan will serve to clearly define the project as well as the business opportunities, assuring KEAP’s viability and economic merit. We have set the stage for collective sustainability -- stakeholders, owners, operators, and financial partners, working together to launch and successfully operate the Keene Energy and Agriculture Project.
Outcomes and Benefits
Business Components and Technology
The Keene Energy and Agriculture Project (KEAP) is designed with symbiotic links between the stacked businesses of renewable energy, aquaculture, greenhouse hydroponics, and Algaeculture to create an inter-reliant entity known as an integrated food and energy system (IFES) which will provide the following benefits:
The heart of the Keene Energy Agriculture Project (KEAP) will be a one-acre greenhouse facility with a field of hydroponic lettuce and herbs. An attached 11,340 square foot hard-shell building will house a recirculating aquaculture and state-of-the-art food processing, packaging, and distribution facilities, as well as offices and a laboratory. The entire facility will be powered and heated year-round by in-house management and operations of a combined heat and power plant running on landfill gas captured from the adjacent City landfill. Access to abundant, reliable, and sustainable heat and energy transforms the economics and the environmental stewardship of KEAP, facilitating additional resource integrations and up-cycling that set it apart from any system in existence.
• Improve capture, management, and beneficial use of landfill gas at the closed Keene Landfill, leading to a significant reduction in greenhouse gas emissions. • Create a net-zero integrated food production facility for year-round fish and vegetable production in a cold climate. • Demonstrate ideal use of existing resources through integration of waste streams and “up-cycling”. • Conduct algae biodiesel and algae feed research in partnership with Keene State College and Dartmouth College utilizing integration technologies and waste resources to improve the viability and economics of algae biodiesel and feed. • Provide over a half-million pounds of sustainably produced high-quality food year-round to the local market, offering a replicable working model for sustainable local food security in a cold climate. • Create 25 new high-quality jobs at livable wages; 19 entry-level, all positions offer training and career development opportunities. Strong potential for growth leading to additional future job creation. Strong economic multiplier effects on the community.
Annual Outputs of the Keene Energy and Agriculture Project • 750 MW electricity • 9,500 MMBtu • 7,000 Metric Tons of CO2 Offset (destroyed equivalent) • 500,000 pounds of fresh herbs and vegetables
• Establish a center for education and outreach that includes technical training for disciplines related to sustainability in food and energy: energy and nutrient up-cycling systems and engineering, controlled environment food production systems and practices, food safety training, hydroponic vegetable operations, and recirculating aquaculture systems and operations.
• 66,000 pounds of fresh market fish (live)
• Serve as a demonstration of collaborative publicprivate partnerships that address the crucial issues of sustainability, resilience, climate change, and local food/ energy security.
• Zero Waste
• 25 high-quality local jobs with benefits • Algae research and development, in partnership with Dartmouth College and Keene State College • Compost
Proposal Keene Energy and Agriculture Project 04.10.2014
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INTRODUCTION & EXECUTIVE SUMMARY
The following systems and technologies will work together to ensure the long-term viability of KEAP and brand the project and its products as uniquely sustainable and local: • Renewable Energy: Long-term ownership and control of heat and power energy assets from a renewable source. • Greenhouse Technologies: State-of-the-industry OneAcre Greenhouse with fully automated and controlled climate; supplemental light and automated shade and heat curtains; heat and water storage cisterns with rooftop water catchment, treatment, and recycling. The ability to provide abundant heat and supplemental light improves growing conditions to increase yield and quality of products, reduce pest and loss and secure a thriving market through consistent year-round delivery. • Aquaculture: 60,000 gallon state-of-the-industry recirculating aquaculture system raising 66,000 pounds of tilapia, a delicious and ever-popular white fish, for the local live market every year. The system includes a complete water treatment plant which captures all waste and nutrients for up-cycling to the hydroponic nutrient delivery system. • Nutrient Cycling and Hydroponics: Proprietary organic nutrient recycling and management technology provides unequaled water quality for fish culture, and ideal nutrient balance and supply to hydroponic vegetables with greater efficiency, reduced input costs, and superior quality produce. 34,000 square feet of hydroponic field in ideal growing conditions produces 496,000 pounds of lettuce and herbs per year. • Processing Facilities: Fully contained growingprocessing-packaging-distribution facilities allow unequaled food safety control and certification, not only reducing operating risk, but opening access to undersupplied institutional markets demanding food safety assurances and certificates. • Algae R&D: Algae research and development for feed (fish) and biofuels. An ongoing funded research partnership with Dartmouth College, and a new partnership with Keene State College will add a noninvasive (from a business operations perspective) prestige and future value to the project. Promising work
is already underway to up-cycle waste nutrients from the power plant flue gasses and the aquaculture effluent of models of KEAP to grow algae for biofuels. Concurrent research on algae strains adapted to this integrated system is already providing a promising quality fish feed alternative to unsustainable and severely limited supplies of fish meal and fish oil. Success in these research and development endeavors provides a potential long-term upside, but immediately provides ongoing benefit of maintaining public as well as academic attention on the KEAP sustainability brand. The Need and Business Advantages The current US agricultural system requires 10 calories of energy to produce 1 calorie of food, accounting for 17% of the total US energy budget. This system dominates in the depletion of critical resources of water and topsoil. The current model is highly unsustainable over time. The planet is already facing very real challenges associated with critical resource security, ecosystem and environmental degradation, agricultural vulnerability to, and effect on, climate change and food safety/security. By linking energy and food production, the Keene Energy Agriculture Project (KEAP) follows principles that incorporate a sustainable approach to the management of wastes and resources. KEAP simultaneously proves a stronger business model: benefits from multiple revenue streams and cost-savings gained through energy independence and energy sales, sales of fish and produce, and operating cost savings from water and nutrient recycling and waste output reduction. KEAP increases its strength and resilience by building local and regional stakeholder relationships and strong research and education partnerships. KEAP represents a new, transferable model for our food system by demonstrating the feasibility of scalable, year-round, local food production that does not rely upon fossil fuel inputs and is largely water and nutrient self-supporting. Controlling the energy assets required to grow premium fresh organic food in northern markets is a new approach to energy and food security. From a practical business standpoint, KEAP is positioned to be immune to the ever-increasing risk of environmental and climate (weather) impacts, as well as volatile and rising resource costs. In short, KEAP is simply good
business --sensible sustainability capitalizing on a growing and largely undersupplied demand for safe, local, and sustainably produced food -- a unique opportunity for a thriving business capable of reliably meeting market demand. This integrated approach to developing these energy resources is sui generis -- reaching far beyond conventional landfill gas-to-energy development, and bringing greater value to the environment and the community -- a “closed loop� system that strives to transform all waste streams and pollutants into energy, heat, food and feedstock.
Aerial Rendering of KEAP Greenhouse & Headhouse
Proposal Keene Energy and Agriculture Project 04.10.2014
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02 PROJECT DESIGN & DEVELOPMENT APPROACH
Proposal Keene Energy and Agriculture Project 04.10.2014
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PROJECT DESIGN & DEVELOPMENT APPROACH
Project Design and Development Phases The initial phase and goals for the development of KEAP will provide the framework for all business planning and technology for the project. This business plan and the accompanying documents will accomplish this goal. Drawing on years of Integrated Food Energy Systems research, design, and project planning and implementation experience, Don McCormick will clearly establish and support a viable and sustained business and development approach for KEAP. The materials created will allow the successful solicitation and development of stakeholders and partners during Phases II and III necessary to the ultimate fulfillment of the project. Phase II will establish the development leadership team required for a successful project, and build relationships and support with local and business stakeholders. During Phase II, research and education partnerships will be formed, initial financing partners and institutions will be pre-socialized, and project and permitting requirements will be clarified with regulatory and government stakeholders.
A Detailed Project Timeline is presented as Section 6 of this proposal.
Phase III will formalize the management and operating team as well as ownership and organizational structure. With the team fully established and all stakeholder input received, a final revision of the business and marketing plan will be made. Phase IV will bring the project to financing and investing prospects and develop and secure complete project and startup capital. Phase V final selection of team, contractors and vendors. Phase VI finalize all design details and create construction documents. Permitting. Phase VII Landfill Gas Collection and Control System restoration and tuning. Phase VIII Generation plant overhaul and plant operator selection and training. Phase IX Construction kick-off.
Phase X Agricultural Facility Procurement and Construction including: • Site work and utilities • Greenhouse and Head house • Fit-up • Landscaping • Equipment set-up and connections Phase XI Ag Facility Operations Start-up including: • Management and Technical team hired and trained • Aquaculture system start-up and nutrient development • Hydroponic system start-up • Process and training with GAP Certification • Production Staff hired and trained • Vegetable products to market • Integration of aquaculture with hydroponics • Fish to market • System debugging and value engineering Phase XII Algae Facilities and Project developed and integrated. Phase XIII Ongoing public outreach and education. Development Method: Deploy Proven Technology and Team with Experts Development of the Keene Energy and Agriculture Project requires expertise in project design and planning, financing, team and project management, permitting and regulatory compliance, renewable power system, greenhouse and aquaculture facilities design and operations, and algae culture research and development and quality control. The complexity of the project, both in development and in operation, presents the challenge of building a team with the appropriate array of talent and capabilities, and the risk and risk-mitigation of complex integrations. Operation of KEAP similarly requires multiple skills, proven capabilities in landfill gas and CHP plant operations, greenhouse and hydroponic crop management, aquaculture, produce marketing, and general business management.
KEAP will select only proven and best-of-breed equipment and technologies, supported by proven vendors. By investing in and surrounding itself with engineering and technical consultants, and utilizing the expertise embedded in the region and industry’s best equipment and services, KEAP will eliminate the risk of innovating at the level of core systems and technologies and gain a strong outside network of support and stakeholders. The team of experts and the businesses leading in their field already selected as part of KEAP’s network include top regional landfill engineering firms, Caterpillar (the most proven landfill gas to energy system in the world), the leading greenhouse design and manufacturing firms in North America, the county’s top Aquaculture Systems engineers and equipment, and so on. By leveraging firms, systems and equipment with the highest and most enduring record of success, we all but eliminate business risk at the operational level, and transfer the risk and challenges to the area of our strength as well as to our economic advantage. Therefore, with systems, equipment and support challenges met, we focus on the engineering and operations of the points of integration – the engineered symbiosis of the integrated model. The default operations therefore become predictable businesses in their own right, capable of operating at a profit without the advantages of the integrations. Coupled with the advantages of free or low-cost heat and power, reduction of input costs, reduction of waste costs, and the overall marketability of a highly visible sustainability brand, this model is both attractive and resilient. Hire and Build Excellence Within KEAP’s fundamental philosophy underscores investment in the skill, quality, and satisfaction of its employees to create a stronger, more resilient, successful and profitable business. This is borne out by some of the most enduring, flexible, and successful businesses.
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PROJECT DESIGN & DEVELOPMENT APPROACH
KEAP will provide above-industry pay with benefits to all employees, thereby investing in every employee’s success and growth via an intelligent and formal training program. Creating a positive, cooperative and energized work environment will establish a team mentality and a unified company vision in every employee, will ultimately increase long-term profitability and durability. KEAP will provide real opportunities for individuals to contribute to the success of the company, and build their own careers in so doing. The KEAP business model will build a formal training program that emphasizes mentorship, not only within the company but also in training offered by outside programs and consultants. Investing in the satisfaction and singular abilities of each employee will stimulate a sense of accountability and team playing, as well as improve efficiency, quality, and profitability. A collaborative environment is self-generating and autonomous. It reduces supervisory requirements, employee churn, and produces ongoing returns to the company over time, while significantly mitigating the greatest risks in the farm/ food industry: quality and food safety, and ongoing overall workforce reliability.
On-site Renewable Energy Production from Existing Resources Local Food Grown without Fossil Fuels The Keene Energy and Agriculture Project will capture the City of Keene’s landfill methane gas --a greenhouse gas that is 23 times more potent than CO2 -- and turn it into an on-site source of renewable heat and power. Both the KEAP facilities and the City facilities share the benefits from price stability and the great “green” story of a carbon-negative facility -- renewable self-reliant energy to provide the region with high-quality organic local food year-round without using fossil fuels. As a producer of renewable energy that transforms a greenhouse pollutant into a fuel source for sustainable agriculture, KEAP, as already noted, in being awarded a $500,000 EPA Climate Showcase Communities Grant, will continue to have unique access to government programs supporting renewable energy, resource and environmental stewardship, and sustainable agriculture. KEAP’s ability to monetize the many layers of green initiatives that parallel the country’s stated policy and funding priorities will open the door for ongoing grant and subsidy support. Active partnerships with Dartmouth
College and other prestigious institutions, as well as with leaders in transformative food-energy-sustainability research, will enhance existing and future pathways, and broaden access to national funding sources. Year-round, climate-controlled agriculture is typically cost-prohibitive in the north because it relies on fossil fuels for heating. KEAP will operate the landfill gas collection and control systems and a combined heat and power plant which will provide the on-site greenhouse and food production facilities, along with the City’s Material Recovery Facility (MRF) with renewable energy. Because the MRF requires a significant amount of power only during day-time operating hours, KEAP will be able to increase the availability of power and heat to the KEAP greenhouse and food production operations from evening through early morning, when it is most valuable for supplemental lighting and most needed for heat. This ensures superior growing conditions and reduced cost even during the coldest and longest winter nights. Yearround, “under glass” agriculture is also immune to the environmental/weather variables that have challenged the produce industry in the past. Production stability and reliability results in preferred status with produce buyers. The demand for locally grown produce is expanding dramatically and commanding a higher price point, enabling KEAP to sell its products at a premium price. As severe weather continues to impact climate change, food safety problems persist and costs of transportation to market increase. KEAP’s local produce will realize an increasing competitive advantage over produce that is field grown and trucked to market from distant locations. Winner of the EPA Climate Showcase Communities Grant According to the International Panel on Climate Change, methane has 23 times the global warming potential of carbon dioxide, therefore its reduction pound for pound is 23 times more protective of the atmosphere. Methane from decomposing municipal waste is combusted to produce heat and electricity. The remaining products are carbon dioxide, sulfur oxides and nitrogen oxides. These byproducts are harvested from energy plant engine emissions and converted into plant material through photosynthesis. Thus the projects can be considered “carbon negative” and according to U.S. EPA’s Landfill Methane Outreach Project, one of the best ways to reduce one of the largest, human-caused source of greenhouse gases.
In recognition of the City of Keene’s longstanding leadership in sustainability initiatives, and the Keene Energy and Agriculture Project’s unique approach to addressing many of the core elements of climate change mitigation and resource stewardship, the KEAP has been awarded a $500,000 Climate Showcase Communities Grant. This grant will greatly enhance the project’s ability to secure all capital required to develop and successfully launch this project and its progeny. Education and KEAP’s unique potential for future a Professional Training Program KEAP offers a unique opportunity to experience a very tangible demonstration of sustainability through integration and waste up-cycling. This offers a valuable opportunity to present the issues of our changing world and potential and emerging solutions to students and practitioners as they observe an operating system-approach to managing resources and waste through integrated design. In the future, scheduled tours and tailored formal training programs will be offered to companies, organizations and individuals by our staff, and by tapping the expertise of others in professional and higher education networks. Having multiple integrated systems in one location provides diverse hands-on training opportunities, including: renewable energy to power and heat generation; intensive Recirculating Aquaculture Systems (RAS); Aquaponics; Hydroponics; Waste Management/ Integration; Algae Production; and Water Management, Conservation and Energy Efficiency Practices in Greenhouse Agriculture. With the demands on energy and food production rising worldwide, KEAP will have the ability to educate and train others to help solve these issues, and to create a business in education and training. However, it is believed that the business must first develop its core production and market of fresh fish and vegetables before contemplating this future training and education business opportunity. Nonetheless, in the short-term KEAP is committed from the start to deliver community outreach programs, including scheduled tours for K-12 students in the region and the general public, as well as hosting an educational portion on the KEAP web site. And KEAP is already engaged and growing institutional research and educational partnerships.
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THE KEENE ENERGY & AGRICULTURE PROJECT (KEAP)
is a one-acre controlled environment greenhouse plus processing center operated on free renewable heat and power resources. Distributing produce and fresh fish to the premium local NE market year-round. Turns waste into energy to power a local food economy Engineered to reduce waste and lower operating costs by recycling inputs and outputs Increases local food and energy security while reducing greenhouse gases in a food-safe facility immune to climate Annual Outputs of the Keene Energy and Agriculture Project • 750 MW electricity • 9,500 MMBtu • 7,000 Metric Tons of CO2 Offset (destroyed equivalent) • 500,000 pounds of fresh herbs and vegetables • 66,000 pounds of fresh market fish (live) • 25 high-quality local jobs with benefits • Algae research and development, in partnership with Dartmouth College and Keene State College • Compost • Zero Waste
7,000 METRIC TONS OF CO2 OFFSET (CAPTURED FROM METHANE GAS FROM ORGANIC WASTE IN LANDFILL)
66,000 LBS OF FRESH MARKET FISH (LIVE)
500,000 POUNDS OF FRESH HERBS AND VEGETABLES
25 HIGH-QUALITY LOCAL JOBS WITH BENEFITS
9,500 MMBTU OF HEAT
POTENTIAL TO FEED RENEWABLE ENERGY BACK TO THE POWERGRID
PROJECT DESIGN & DEVELOPMENT APPROACH
STAFF PARKING
GREENHOUSE
SITE PLAN
CH
ESH
Proposal Keene Energy and Agriculture Project 04.10.2014
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RAI
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PROJECT DESIGN & DEVELOPMENT APPROACH
PHOTO VOLTAICS (CONCEPTUAL)
ROOF PLAN
AQUAPONICS DISTRIBUTION
PREP
COOLER
OFFICES
GREENHOUSE
FLOOR PLAN Proposal Keene Energy and Agriculture Project 04.10.2014
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PROJECT DESIGN & DEVELOPMENT APPROACH
SOUTH ELEVATION
GREENHOUSE
EAST ELEVATION
SOUTH ELEVATION
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EAST ELEVATION
REENHOUSE
HEAD HOUSE
HEAD HOUSE
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PROJECT DESIGN & DEVELOPMENT APPROACH
PROJECT DESIGN & DEVELOPMENT APPROACH
03 PROJECT OPERATIONAL & FINANCIAL PLAN
Proposal Keene Energy and Agriculture Project 04.10.2014
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PROJECT OPERATIONAL & FINANCIAL PLAN
The City of Keene & The Closed City Landfill The City of Keene has long been a leader and innovator in environmental stewardship. In the 1990s, the City built and began operating what was, at the time, one of the very few landfill gas extraction and control systems to power generation facilities. This facility has served the primary power needs of the City’s on-site Material Recovery Facility (MRF) ever since. This fundamental infrastructure and equipment, as well as the City leadership’s enduring commitment to environmental leadership will now be transformed into a new innovative project which will take this resource to its maximum potential. Don McCormick has dedicated the past 10 years to the design and operation of integrated food-energy systems, and to marketing sustainable food products. Therefore, a wealth of knowledge, data from experience, and actual product market trials will support the following production assumptions and data, as well as the market research and marketing plan.
Site Control, Lease and Gas Rights, Operational Rights The foundation and fundamental components of a contract with the City for site lease, gas rights, operational rights and responsibilities, and equipment control and management have been pre-discussed and await final negotiation when the KEAP ownership and management entity is formed. A contract will propose a 30 year site lease with renewal options for the greenhouse site and related equipment and infrastructure, and rights to all gas produced by the closed Keene landfill along with operational rights and responsibilities for all equipment in place and to be added for the extraction, and control of landfill gas, and the generator and heat recovery and distribution systems to be employed in the generation and distribution of power and heat to both the MRF and the new agricultural facility. KEAP will maintain all rights to environmental attributes of the project. And KEAP and the City will establish clear guidelines and governance to share common transportation routes and infrastructure in such a way as to maintain the smooth operations of both KEAP and the Keene MRF and Transfer Station. KEAP will be obligated by contract to provide reliable power to the City MRF and related facilities as needed,
including backup power in the event of system downtime. A price of $0.09 per kWh with a 3%/yr inflation increase will be charged to the City for electricity delivered, as recorded by a meter provided by KEAP. The City will transfer ownership of the CAT genset and all related controls and switchgear, but maintain ownership of the gas collection and control system and flare, as well as the existing CAT diesel backup generator. KEAP will invest in the improvement of both the gas collection and control system and the genset, including the addition of a heat recovery skid designed to maximize the recovery of all “waste” heat from the genset. KEAP will then continue to operate and improve the facilities over time to ensure reliable long-term delivery of heat and power to the KEAP facilities, and power to the City’s facilities.
recovery unit to capture waste heat for distribution to the agricultural facilities. A recent pump-test study and first phase improvement to the gas collection system provides us with valuable understanding of the gas flow and quality and potential improvements to the system to increase supply and duration of the fuel. An intelligent design for shuttling the gas between generator with its heat recovery system, and a direct-burn boiler capable of the most efficient heat production is part of the capital and operating plans. This will allow the higher power, but lower heat production, to take place during the day while both the City and the KEAP facilities are drawing greater electrical load and while greenhouse heat demand is lower; and then shift gas to the boiler for the colder night heat demands with greater output and efficiency.
KEAP Greenhouse and Facilities Site A site plan and artist’s rendering is included in Appendix 2. An ideal site has been selected on City land, southwest of the MRF, and located well away from the landfill, clear of City operations, but prominent to visitors as an attractive and valuable asset to the community. This location has been reviewed by KEAP’s civil site engineer, Don Marsh, and a draft plan created for locating a full one-acre (43,680 ft²) greenhouse with 11,340 square foot hardshell processing, aquaculture, packaging and distribution facility, as well as all parking and transportation access. Storm water management systems, and other essential infrastructure will be engineered in the next phase, however, the design anticipates and provides space to accommodate these needs. Energy and Heat Production and Distribution The existing CAT 3412 Gas Generator and related controls and switch gear is currently operating and capable of generating up to 250 kW of power from landfill gas collected at the site. Power is currently being used by the City’s MRF with peak loads of approximately 100 kW/hr and base loads during operating hours below 40 kW/hr. KEAP will take over control and responsibility for the maintenance and operations of the landfill gas collection and control system, the generator and electrical controls and switchgear. The capital budget anticipates an initial investment of $150,000 for improvements and overhaul of existing equipment, and the addition of a heat
The economic, production quality, and other business advantages of owning our own heat and energy source cannot be overstated. Ideal year-round production of food in a northern greenhouse is generally limited by supply of heat and of electricity. Having an abundance of both, and having the opposite demand cycle as the City’s facilities allows us to maximize the growing environment by providing supplemental growing light after sunset and before sunrise, when the MRF is closed. This means that KEAP will be in constant summer growing conditions -- an unbeatable market advantage created by producing local fresh vegetables year-round at the same quality and reliability. Never ceding shelf-space to another supplier due to shortage or crop cycles is also a huge market advantage. Abundant heat and power ensures that controlled environment farming behaves with the reliability of manufacturing. For purposes of managing the heat and energy plant as a business (cost center), the energy plant will not only sell power to the City, but will sell heat and power to KEAP as an internal to-from book entry. The model aims to result in a heat and energy plant which operates at break-even while providing all necessary heat and power to KEAP at a greatly reduced price. The financial model included with this business plan clearly establishes these off-setting revenues and expenses.
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PROJECT OPERATIONAL & FINANCIAL PLAN
Local Food Production A 43,680 square foot hydroponic greenhouse will be at the center of KEAP, coupled with an 11,340 square foot head-house containing a 60,000 gallon recirculating aquaculture system, food processing, packaging and distribution facilities; as well as offices, laboratory, and conference room. These facilities and equipment will be state-of-the-industry technology for engineered controlled environment and food production systems. Technology includes full climate and light controls through sophisticated computer systems linked to sensors for internal and external environmental conditions and weather. Modern systems contain logic which anticipate control actions based on the facility’s own weather station to perfectly manage internal growing conditions by controlling multiple venting and heat systems, reflective shade-cloth/heat-retention curtains, and 100,000 watts of grow-lights --all within a rigid, translucent greenhouse, designed by years of refinements from experience gained primarily in European growing facilities. To consistently create ideal growing conditions year-round requires a tremendous amount of heat and power, which KEAP has designed in to be self-supplied by managing a potentially polluting waste gas into a viable energy source. Every week of the year this state-of-the art facility will consistently produce, package and ship 840 whole tilapia, 2,650 one-ounce clamshells of basil, and 13,270 tenounce clamshells of salad mix for regional food markets. Because the facility is entirely environmentally controlled and food handling, processing, and packaging can be so closely managed, the products can and will be certified at the highest food safety standards. This provides a distinct advantage and access to market sectors sensitive to food safety – a growing concern for all. In particular, grocery chains and institutional kitchens are demanding stricter food safety controls which field-cropping cannot readily provide, limiting supply. Local institutional buyers such as the regional college and hospital food services, are currently stressed by their clients to obtain local fresh products, but unable to do so while maintaining the necessarily strict food safety standards. KEAP is uniquely qualified to fill this demand and will have both preferential access and price premium as a reward. As facility and systems designer, Don McCormick has worked with virtually all types of hydroponic growing systems, and harvesting, packaging and handling systems, allowing for a synthesis of technologies, which increase yields and efficiency.
Existing best-of-breed designs greatly reduce labor demands of both time and skill, with better final product. The scale of KEAP allows us to take advantage of these technologies for seeding through harvest. Future automation of washing and packaging will offer additional opportunity for control and cost-reduction. The initial business plan, however, anticipates manual washing and packaging operations. The greenhouse will have both vegetable production and aquaculture components. Nutrient waste from the fish raised in the aquaculture side will be used to fertilize the plants in the hydroponics side of the greenhouse, similar to a process called “aquaponics” or “bioponics.” However years of experience, research, and development gained from system design and operations has led the designer of KEAP to develop a unique staged process where nutrient development is side-streamed and augmented with organic nutrient additives before the final plant nutrient solution is delivered through the hydroponic systems. In this way, we achieve all of the advantages of aquaponics, nutrient recycling and water quality management without compromising between what fish need and what plants need. Each system will receive the ideal nutrient or water quality for maximum productivity and health. All cultivation systems are designed to work together, providing the greatest possible production efficiency and improved product quality, but are also designed to allow each component to operate completely independently and conventionally in the event of a systemic issue. Overall, the system is designed to include 60,000 gallons of aquaculture, 34,000 square feet of hydroponic vegetable production, and approximately 3,000 gallons of algae culture. And the net result is improved fish and plant health and yields, complete in-house water quality management and recycling, independence from fossil fuel-based chemical fertilizers, and an environmentally positive agricultural project with only compost for a waste product.
Partnership with the New Hampshire Food Bank While all food coming from KEAP will be nutritious and delicious, not all will be cosmetically perfect enough to be sold as KEAP premium products. An estimated 6% cull rate will provide 30,000 pounds of fresh produce a year – that’s 577 pounds every week.
KEAP will work together with the New Hampshire Food Bank to bring this fresh food to those in need in our community. And unlike some of the Food Bank’s current fresh food sources, KEAP will be able to provide a reliable and predictable supply of vegetables year round. The distribution chain and timeline of fresh food-to-food banks tends to result in produce arriving at its limit of expiration. Instead, KEAP would provide freshly harvested food with a longer shelf life, leading to less spoilage and waste. Therefore, food harvested will be food eaten. This valuable partnership will present a visible connection between food and people, and draw attention to the need to provide access to healthy food to the whole community.
Algae Production R&D During summer months, when the heat from the landfill gas-to-energy co-generators is not needed to heat the greenhouse, the waste heat and the actual emissions from the engines, introduced into a nutrient-rich water from the aquaculture waste, can be used to grow algae on a 1-acre area located on the landfill face. The algae will be harvested and used to create a high protein fish and poultry feed, for biofuel R&D, and possibly also for nutraceutical products. As a final, perfecting step in the closed-loop integration, a portion of the feed produced by the algae will be used to feed the fish raised in the greenhouse. Don McCormick and his former partners instituted a collaboration with UVM’s Rubenstein School of Environment and Natural Resources and Dartmouth College’s Environmental Studies Program to establish an algae research and development program –- exploring the ability of integrated system design and waste nutrient up-cycling, in tandem with open and the undevelopable land associated with landfills, to provide an economically viable approach to algae-culture. Of particular interest was the ability to further reduce waste and recover carbon from the renewable energy plant’s flue gas, and up-cycle nutrients from aquaculture effluent as feedstock to algae culture. This program was funded by a grant from the Department of Energy through the Vermont Sustainable Jobs Fund’s Biofuels Initiative. An additional outcome of this research was the successful cultivation of algae strains, which promised to become valuable and concentrated sources not only for biofuel oil, but fish feed, rich in omega-3 oils
and balanced amino acid profiles (protein), and even nutraceutical compounds. This initial research phase was successfully completed with promising results. And the work led to ongoing laboratory research and fish feed trials with tilapia at Dartmouth College. There is a mutual desire to continue this exciting research at KEAP. The algae program is self-supporting through grants and complementary (synergistic and non-competitive) to KEAP core business interests. In fact, the algae program brings prestige, public attention, and access to unique funding opportunities as it seeks to address serious global food and energy issues in Aquaculture and Fisheries Sustainability, and Biofuels development absent of competition for agricultural resources. KEAP intends to extend this education and research collaboration to the existing biodiesel research and educational programs at Keene State College and to participate in the Monadnock Biodiesel Collaborative. A Future KEAP Research and Training Facility One goal of the Keene Energy and Agriculture Project is to successfully demonstrate a viable, scalable, and replicable business model for sustainable local food and energy. Therefore, future success will mean opportunities for replication and emulation, leading to a demand for technical support, training, and consulting. As this new opportunity emerges, the KEAP facility will be ideally suited to provide a training and technical support business. The KEAP facility will then be used to train managers, supervisors and technicians for new projects, our own or others (when non-competitive). Controlled environment, greenhouse food production is increasing rapidly in North America and qualified production staff is very difficult to find. The need for professional technical training in this field is great, but resources are very few. The current options for professional training in greenhouse production and the related specialized fields of nutrient management, pest control, plant and fish biology and pathology, etc, are few, primarily only available through university level degree training, not hands-on workforce development. With KEAP’s established relationships with regional colleges and universities, we would be able to bring in experts in specific disciplines to create broad and deep training programs which will not only serve external clients, but will ensure that KEAP technical staff and growers develop and maintain the highest possible skill level.
Proposal Keene Energy and Agriculture Project 04.10.2014
35
PROJECT OPERATIONAL & FINANCIAL PLAN
A Triple Bottom Line Company The Keene Energy and Agricultural Project will commit from the start to a higher standard for social responsibility and respectful employment at living wages for all employees. The agricultural industry is rife with unfair and unsustainable employment practices, poor safety, and low wages. KEAP will be a member of Fair Food Network and an advocate for improving conditions and labor practices on farms and agricultural operations – leading by example. KEAP will pay good wages, provide benefits, and commit at all levels within the company to maintaining a safe, respectful, rewarding work environment, including rewarding skill and effort, and developing paths and opportunities for growth at all levels in the company. The KEAP founders strongly believe that not only is this the right way to build and run a business, but that it ultimately adds to the long-term benefit of the company, including its bottom line. The company’s rewards for providing quality jobs in a respectful environment include reduced churn and increased loyalty due to employee satisfaction, as well as higher efficiency and improved attendance, and the increased quality gained through bottom-up quality commitment due to empowerment and individual “ownership” of the company’s mission and vision. This kind of loyalty and stability cannot be bought any other way and will continue to attract the best new talent as time goes on. All employees will make a commitment to participate in the company with the goals of encouraging all members of the team and ensuring a respectful environment, but the management, supervisory, and technical team will serve as leaders of culture and be specifically trained, supported and critiqued on these skills.
An Organizational Chart is presented in Section 5 of this proposal.
Proposal Keene Energy and Agriculture Project 04.10.2014
37
PROJECT OPERATIONAL & FINANCIAL PLAN
Keene Energy and Agriculture Project Capital Budget Personnel
Project Management, 0.167 FTE @ $90,000/yr (general management of the project from beginning to end, lease rights, contracts, etc.) Engineer- Consulting, 0.125 FTE @ 90,000/yr (site design work, technical drawings, mechanical - agriculture systems) Engineer- Analysis, 0.125 FTE @ 90,000/yr (infrastructure/gas analysis, systems upgrades, CHP plant design) Engineer- Permitting, 0.133 FTE @ 90,000/yr (environmental, city and electricity grid system permitting) Total Personnel
Year 1 Year 2 Year 3 EPA Grant Cost Match EPA Grant Cost Match EPA Grant Cost Match
Tota
$0
$0
$5,010
$5,010
$5,010
$5,010
$1
$0
$0
$7,500
$7,500
$0
$0
$
$0
$0
$7,500
$7,500
$0
$0
$
$0 $0
$0 $0
$7,980 $27,990
$7,890 $27,900
$0 $5,010
$0 $5,010
$
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$1,200 $520 $1,200 $36 $2,956
$0 $0 $0 $0 $0
$600 $260 $600 $18 $1,478
$0 $0 $0 $0 $0
$600 $260 $600 $18 $1,478
$0 $0 $0 $0 $0
$
Fringe Benefits
Project Management, 0.167 FTE @ $30,000/yr (general management of the project from beginning to end, lease rights, contracts, etc.) Engineer- Consulting, 0.125 FTE @ 30,000/yr (site design work, technical drawings, mechanical - for New CHP plant and agriculture and algae systems) Engineer- Analysis, 0.125 FTE @ 30,000/yr (infrastructure/gas analysis, systems upgrades) Engineer- Permitting, 0.133 FTE @ 30,000/yr (environmental, city and electricity grid system permitting) Total Fringe Benefits
Travel Keene Reps to EPA workshop
airfare: 2 @$600 per diem: 2 staff x 4 days at $65 hotel: 2 staff x 3 nights @ $200 p/night airport parking: 6 days @$6 p/day Total Travel
Supplies Equipment Electrical Switchgears and Relays Refurbishing Existing Genset Wellfield Improvements
Heat Recovery Equipment
Flare
Supplemental Boiler Greenhouse & Hydroponic System Aquaculture System
Algae Batch Production System Total Equipment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$10,000 $5,000 $0 $50,000 $0 $10,000 $270,000 $116,088 $0 $461,088
$10,000 $20,000 $5,000 $50,000 $25,000 $10,000 $280,000 $183,912 $10,000 $593,912
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$10,000 $0 $0 $0
$0 $0 $0 $0
$0 $30,000 $10,000 $10,000
$ $ $
$1 $
$5
$1 $27 $11
$4
Contractual
Legal (design, review and execution of all contracts and associated legal document for the city by the city's legal department) Site Work Upgrade Existing Equipment Control Systems Total Contractual
Total Project Cost
$0
$0
$0
$2,956
$0
$29,468
$10,000
$0
$50,000
$37,900 $467,576 $648,922
Stress Test Keene ONE-Acre Financial Model 7-25-13
$50
Total EPA Total Match Grand Total Match
One Acre
$5,010
$10,020
$10,020
$20,040
$
30,000
$0
$7,500
$7,500
$15,000
$
20,000
$0
$7,500
$7,500
$15,000
$
15,000
$0 $5,010
$7,980
$7,890
$15,870
$33,000
$32,910
$65,910
$ $
15,870 80,870
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0 $0
$0
$0
$0
$0
$0
$0
$0 $0 $0 $0 $0
$2,400 $1,040 $2,400 $72
$0 $0 $0 $0
$2,400 $1,040 $2,400 $72
$5,912
$0
$5,912
$
5,912
$0
$0 $0
$0 $0
$0 $0
$
2,000
$0
10,000 20,000 $5,000 50,000 25,000 10,000 80,000 83,912 10,000 93,912
$10,000 $5,000
$10,000 $20,000
$20,000 $25,000
$50,000
$50,000
$100,000
$10,000 $270,000 $116,088 $0 $461,088
$10,000 $280,000 $183,912 $10,000 $593,912
$20,000 $550,000 $300,000 $10,000 $1,055,000
$0 30,000 10,000 10,000
0,000
$0 $0 $0 $0 $0
$10,000 $30,000 $10,000 $10,000 $60,000
$10,000 $30,000 $10,000 $10,000 $60,000
8,922
$500,000
$0 $0
$5,000
$25,000
$5,000
$25,000
$686,822 $1,186,822
$ 40,000 $ 25,000 $ 5,000 $ 100,000 $ 25,000 $ 30,000 $ 1,000,000 $ 300,000 $ 10,000 $ 1,535,000
$ $ $ $ $
10,000 588,000 15,000 15,000 628,000
$ 2,251,782
Proposal Keene Energy and Agriculture Project 04.10.2014
39
Keene Energy and Agriculture Project
Sensitivity Analysis UOM
Energy production variables Current SCFM Landfill Gas Methane Percentage Rate of Decline in LFG production Landfill GCCS and CHP Operating Expense Boiler Efficiency
Input
SCFM % %/Yr $/kWhr %
Food production variables Total Square feet of Greenhouse Basil Allocated growing space Annual Yield # Laborers/10,000 Ft² Production Lettuce Allocated growing space Annual Yield # Laborers/10,000 Ft² Production
$
Ft ²
Aquaculture - Tilapia Total Gallons of Aquaculture Annual Yield # Laborers/100,000 Gallons Market Rates and Pricing: Revenue or Cost Energy Rates Electricity: Selling price: External Electricity: Selling/Buying price: Internal
Greenhouse and Agricultural Systems Complete Ag Facility and Systems and Project Base Cost Ag Facility and Systems Cost per Acre Ag Facility and Systems Cost Aquaculture System Cost per Gallon Aquaculture System Cost Total Agricultural Facility and Systems Cost Agricultural Business Startup Operating Capital
6,000 10.76 12.0
10.76
28,000 15.4 4.0
Ft ² Ft ²
34,000 77.8% 70% to 85%
Gallons Lbs/Gallon
60,000 1.10 1.0
Heat: Selling price: External Heat: Selling/Buying price heat: Internal, Waste&Boiler heat $/MMBtu Buying price heat (Propane) $/Gallon
Capital Requirements Energy Plant (GCCS, Heat, Power, Controls, Connections) Energy Plant Cost per kW Energy Plant Capacity kW Total Cost Energy Plant Complete Energy Plant Startup Operating Capital
70 50% 5% 0.24 85%
Ft ² Lbs/Ft² Persons
$/kwh $/kwh
Produce Pricing Selling price Basil (1 oz clamshells) Selling price Lettuce (10 oz clamshells) Fish Pricing Selling price Tilapia (whole fish)
70 48% 3% 0.070 $ 85%
CHP Plant Revenue Electricity Revenue Heat Revenue Total CHP Revenue:
43,680 (Acre = 43,560)
Ft ² Lbs/Ft² FT Persons
Calculated Ttl Allocated growing space Calculated % of Ttl space allocated to growing
Base Assumption
8.00 (Propane $16.67) 2.25
$/Lb
$
2.50
$/kW kW $ $
$
2,500 250 292,732 8,782
$ $/Acre $ $/Gallon $ $ $
$ 250,000 $ 800,000 $ 1,052,204 $ 5.00 $ 300,000 $ 1,959,050 $ 979,525
$ $
Total Capital Requirements
$19,742
CHP EBITDA CHP Debt Service CHP Pre-tax Income (Cash view)
$22,011 $23,083 ($1,072)
$366,551 $0 $366,551
AG EBITDA AG Debt Service AG Pre-tax Income (Cash view)
$ $
16.00 3.98
Expenses CHP Operating Expenses
Expenses Cost of Goods Sold Expenses Total GH/Agricultural Expenses
0.09 0.06
$ $
$29,093 $12,660 $41,753
Greenhouse - Agriculture Revenue Produce Revenue Fish Revenue Total GH Revenue
15.40 4.0
$ $
$/Lb $/Lb
1 2015
$ $
Combined CHP GH Businesses Revenue Expenses EBITDA Debt Service Pre-tax Income (Cash view)
0.08 0.04
Stress Test model Resulting EBITDA Base assumptions Price at wholesale (no premium) Lower yields (or incr. crop loss) lower price & lower yields Pre-tax Income after stress Financing Stress Financing & Lower price & Yield
$3.98
13% 3% $
2,251,782
87% 50%
$ $
2,251,782 988,307
$ $ $
146,929 837,159 2,256,002
$ 3,240,089
Capital Sources and Uses Energy Plant Equity Grants Loans Greenhouse and Agricultural Systems Equity Grants Loans
% of Ttl
0% $ 34.0% $ 66.0% $
102,515 198,999
5.0% $ 146,929 25.0% $ 734,644 70% $ 2,057,003
Loans/Terms, etc Development/USDA Ag/ Loan Commercial Loan Energy Plant Loan
% of Ttl Term 60.0% $ 1,234,202 40.0% $ 822,801 100% $ 198,999
10 10 10
Key/Instructions Denotes field that accepts data Denotes modifiable field that contains industry standard data Denotes self-calculating field: Do NOT add data Stress Test Keene ONE-Acre Financial Model 7-25-13
APR 3% 7% 3%
$550,883 $300,079 $850,962 ($484,411) $174,132 ($658,542) $408,305 $870,704 ($462,400) $197,215 ($659,615)
($479,653) ($489,325) ($456,256) ($476,940) ($764,955) ($779,496)
2 2016
3 2017
4 2018
5 2019
6 2020
7 2021
8 2022
$52,775 $44,660 $97,435
$52,823 $46,000 $98,823
$52,874 $47,380 $100,254
$52,928 $48,801 $101,729
$52,984 $50,265 $103,249
$53,044 $51,773 $104,817
$53,107 $53,326 $106,433
$77,966
$67,914
$57,862
$57,810
$57,758
$57,706
$57,654
$19,469 $21,112 ($1,643)
$30,909 $23,059 $7,850
$42,392 $34,353 $8,039
$43,919 $23,059 $20,860
$45,492 $23,059 $22,433
$47,112 $23,059 $24,053
$48,780 $23,059 $25,721
$2,831,610 $2,916,558 $3,004,055 $3,094,177 $3,187,002 $3,282,612 $3,381,091 $169,950 $175,049 $180,300 $185,709 $191,280 $197,019 $202,929 $3,001,560 $3,091,607 $3,184,355 $3,279,886 $3,378,282 $3,479,631 $3,584,020 $1,327,789 $1,372,483 $1,418,790 $1,466,770 $1,516,485 $1,567,999 $1,621,377 $636,909 $657,378 $678,545 $700,436 $723,076 $746,490 $770,707 $1,964,699 $2,029,860 $2,097,335 $2,167,206 $2,239,561 $2,314,489 $2,392,083 $1,036,861 $1,061,746 $1,087,020 $1,112,679 $1,138,721 $1,165,142 $1,191,937 $257,652 $257,652 $257,652 $257,652 $257,652 $257,652 $257,652 $779,210 $804,095 $829,368 $855,028 $881,070 $907,490 $934,285 $3,098,995 $3,190,430 $3,284,609 $3,381,614 $3,481,532 $3,584,448 $3,690,453 $2,042,665 $2,097,774 $2,155,197 $2,225,016 $2,297,319 $2,372,194 $2,449,737 $1,056,330 $1,092,655 $1,129,412 $1,156,598 $1,184,213 $1,212,253 $1,240,716 $278,764 $280,710 $292,004 $280,710 $280,710 $280,710 $280,710 $777,566 $811,945 $837,408 $875,888 $903,503 $931,543 $960,006
$1,046,377 $1,071,643 $1,097,312 $1,123,384 $1,149,854 $1,176,720 $1,203,977 $692,818 $718,130 $743,544 $759,047 $774,627 $790,272 $805,968 $648,515 $672,460 $696,464 $710,517 $724,603 $738,709 $752,820 $369,259 $384,744 $400,034 $405,111 $409,952 $414,536 $418,839 $613,199 ($73,872)
$646,051 ($61,861)
$665,555 ($63,823)
$709,994 ($41,494)
$737,609 ($36,652)
$765,649 ($32,068)
Stress Test Keene ONE-Acre Financial Model 7-25-13
Proposal Keene Energy and Agriculture Project 04.10.2014
41
PROJECT FINANCIAL & OPERATIONAL PLAN
motives for local food purchases by institutional food service directors including public K-12 schools, colleges, universities, and hospitals. Desire for fresher produced or increased consumption of fresh fruits and vegetables was important in all of the studies. Support for local farms, businesses and community was the top motivation in three studies.” Market Geography and Distribution The Keene Energy and Agriculture Project will enter the local regional fresh produce and seafood market in an area defined by a 100 mile radius. In keeping with KEAP’s goals of demonstrating truly local and sustainable food system development, our goal will be to maximize distribution and access to KEAP’s products as close to the facility as possible, while maximizing marketing and distribution efficiency and the company’s bottom line. In practical terms, the greatest density of distribution will therefore be the smaller local towns and cities including Keene, NH, Brattleboro, VT, and Greenfield, MA; will then expand to include cities such as Manchester, Concord, and Nashua, NH, Amherst MA and others within about a 50 mile radius. And finally, large cities such as Boston, MA, Albany, NY, and Hartford, CT all lie within the 100 mile radius, removing concerns that the local food market demographics are sufficient to support the output of KEAP, and providing excellent live market opportunities for tilapia. Marketing and Distribution Methodology: Part of KEAP’s mission is to develop a model for the broadest accessibility to local food to the average consumer, requiring that local sustainable food is available where they shop. This means that a high priority will be placed on regional Supermarket Chains and Small Grocers, including Food Co-ops. The other large movers of food to the public are the Institutional Food Service Industry, serving hospitals, schools, colleges and other large institutions. Due to customer demand and the unique ability to leverage “local” products into greater market share, these Institutional Food Service Companies, Supermarket Chains and Small Grocers are driven to increase the availability of local produce, meats and seafood for their customers. “Local”, is now the number one market determinant among food providers and their customers. The challenge for the buyers is meeting the logistical challenges and managing the seasonality and lack of professional distribution systems of the small farms that will potentially provide the valuable local products. Don McCormick has developed relationships within, and understanding of, the chain and small grocer produce business, their needs, preferences, and
logistical requirements. Of paramount importance is an understanding of the industry’s current purchasing and marketing practices, and transportation logistics. Larger Chains and the Food Service Industry have perfected the movement of large quantities of fresh produce and Chain and individual store produce buyers have established purchasing habits and preferences that allow them to efficiently and accurately present and move a very wide variety of perishable food every week, while managing losses from spoilage. A combination of knowledge and experience, scale and consistency of production and quality of desirable local fresh fish and produce, and proximity to Chain and Food Service distribution channels will tremendously facilitate market entry and allow KEAP to place itself as a preferred local supplier. KEAP intends to have its own small refrigerated panel truck for closer local deliveries, but work with existing distributors and marketers for consolidation and distribution to the larger Chains and Food Service Buyers. Don McCormick has existing relationships with regional distributors, including: Upper Valley Produce, Black River Produce, and Albert’s Organics, and has, in the past, found their ability to handle daily marketing and distribution logistics more costeffective than in-house management of these tasks. With C&S Wholesale Grocers, the largest wholesale distributor to the grocery industry in our region, headquartered in Keene, NH, we will explore potential for a mutually beneficial partnership for advancing C&S local food and sustainability initiatives, and advance KEAP’s marketing and distribution needs.
Stop & Shop is the region’s largest supermarket chain with approximately 100 stores in our 100mile local radius, and over 40 in our near marketing region. Stop & Shop has been working hard to increase availability and market visibility of local pro Shop distribution logistics will assist in KEAP delivery logistics
Hanover Co-op Food Store- A consumers co-operative, they have a charter committed to sourcing as much local, organic produce and sustainable seafood as possible. A willing direct store delivery partner for both produce and seafood.
Hannaford- One of the region’s largest supermarket chains, Hannaford operates approximately 15 stores in our near marketing region. Hannaford is the only chain that is a certified organic retailer and has adopted a new policy towards sourcing, labeling and selling more sustainable seafood. A willing direct store delivery partner for both produce and seafood.
Lebanon Co-op Food Store- A consumers co-operative, also one of the busiest in the country, they operate with a charter to source as much local, organic produce and seafood as possible. A willing direct store delivery partner for both produce and seafood.
Price Chopper - The only regionally owned supermarket chain in our near marketing region, they operate 6 stores within our near marketing region. They have a strong commitment to regional produce and seafood. Pre-tested with product, they are an enthusiastic direct store delivery partner for both produce and seafood.
We anticipate establishing Keene State College Food Services as a client for fresh local produce, and servicing the account directly.
Shaw’s- They operate 12 stores in our near marketing region, and have a strong commitment to local produce and seafood. A willing direct store delivery partner for both produce and seafood.
We anticipate establishing Antioch University of New England Food Services as a client for fresh local produce, and servicing the account directly.
Dartmouth College Food Services – DFS has already approached us seeking as much food from our facility as they can incorporate into their offerings and assuring interest in establishing a long-term purchase contract when available. Student demand for local food is extremely strong, and supply is difficult. KEAP anticipates a direct relationship with DFS.
C&S is a wholesale distributor to the Grocery industry with headquarters located in Keene. It is natural for KEAP to take a more direct approach in marketing and distributing to Grocers, but this convenience of location and shared interest in the fresh local produce markets will be explored.
Dartmouth Hitchcock Medical Center Food Services has an existing commitment to sourcing fresh food locally, but needs food safety assurances. This is a unique match for KEAP, given its closed environment growing and certified processing packaging facilities. KEAP anticipates establishing a direct relationship with DHMC Food Services.
A new Co-op Food Store located right in Keene, Monadnock Food Co-op is a consumers co-operative, they have a charter committed to sourcing as much local, organic produce and sustainable seafood as possible. We anticipate direct store delivery of both produce and seafood.
Brattleboro Food Co-op, only 20 minutes from Keene, is another regional consumers co-operative with a charter committed to sourcing as much local, organic produce and sustainable seafood as possible. We anticipate direct store delivery of both produce and seafood.
REGIONAL PUBLIC SCHOOLS AND LOCAL FOOD NETWORKS
KEAP intends to enthusiastically participate in existing local food and farm-to-school programs in the region.
Proposal Keene Energy and Agriculture Project 04.10.2014
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LOCAL FARMS PROJECT –
‘Integrating Food And Energy To Create A Vibrant Local Food Economy.’ The Keene Energy and Agriculture Project (KEAP) will be the cornerstone of an integrated network of sustainable food systems in New England. The hub of this network will be a central aggregation point and sustainable food center, bringing production, enterprise, research and distribution together as a 21st Century, energy-independent facility. The site being considered for this state-of-the-art facility has it’s origins in the 19th Century and carries a legacy of regional enterprise and industry in southern New Hampshire for over 150 years. The environmental rehabilitation and adaptive re-use of the former Troy Blanket Mills in Troy, New Hampshire, will bring technology, production, enterprise and sustainable community development to the Monadnock Region. The Troy Sustainable Food Center will also bring jobs and a national attention to the town of Troy.
The Troy Mills Sustainable Food Center will be a fully integrated and interdependent facility that will include the following components: 1. The Troy Mills Vertical Farm: a year-round sustainable fish farm and hydroponic vegetable growing facility; 2. A Food Processing Center designed to receive fresh regional farm products, along with products from the Troy Mills Vertical Farm, and wash, package and store in food-safe certified facilities for marketing and distribution. The Food Processing Center will also increase the value of these fresh farm products in the Commercial Kitchen and Co-Pac facilities through the production of soups, salsa, pickles, or pre-cut and flash-frozen foodsafe certified steam-table ready foods for the region’s institutional kitchens at local hospitals, colleges, schools, and more. The Food Processing Center will be a place where farmers can use shared facilities to increase the value of their products, and food entrepreneurs can build their products, brand and market in
a professionally designed and equipped food processing facility under strict foodsafety processes; 3. A Center for Food Business Incubation with a flow of local products, state-ofthe-art facilities, and great shared talent to support successful new start-ups and assist with mentoring and training when needed; 4. An Education, Research and Technical Center which will serve as a think-tank for sustainable local food systems and business development, as well as the core partner in community services such as technical training and Child Nutritional Development. The volume generated by consolidating these resources creates a big food producer, marketer, and distributer out of many small ones. Shared branding, marketing, and distribution creates greater value and efficiency for local growers and producers, and greater value for large buyers like grocery stores and institutional kitchens. A win-win that opens up tremendous new opportunities for small local businesses.
Sowing the seeds for a local sustainable food economy. Proposal Keene Energy and Agriculture Project 04.10.2014
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PROJECT OPERATIONAL & FINANCIAL PLAN
Product Marketing, Competition and Buying Patterns While there are not any commercial aquaponic greenhouses using methane from landfills to produce tilapia and organic produce operating within our market area in the foreseeable future, we can look at competition from other local, organic produce and also non-organic regional produce. KEAP products will be differentiated by their unique sustainability story, but this story is difficult to tell at the point of sale. Therefore, “Local” and “Sustainable” branding and premium will be available, but will experience competition for shelf-space and consumer purchase with other products making similar claims, and with lower-cost products from the larger commercial agricultural system. Fortunately, the rising demand for local products and consumer interest in sustainability is driving the produce buyers in both the grocery and food services industries to seek local products to protect and grow market share by meeting customer demand. Very little regional competition for local produce exists within our region and almost entirely from small seasonal farms. Therefore, KEAP will be able to leverage its scale, and, most importantly, its ability to produce absolutely consistent produce and fish at stable and predictable weekly volume year-round. This is a powerful market advantage to buyers currently challenged to manage seasonal purchasing with small businesses. KEAP is uniquely able to establish quantities, secure shelf space and maintain it consistently all year long. And buyers are undersupplied in New England even in the summer, with very little to offer during the rest of the year. Fresh Fish - Tilapia: As the “engine” for living organic nutrient development, aquaculture is an essential component of KEAP’s integrated system. However, it should be clearly understood that this is a very small fish farm with only a small amount of product – approximately 850 fish at 1.5 pounds each – to market each week. Supplying the local market will, therefore, be a priority and preference will be given to distribute Tilapia fresh locally through the smaller stores, specialty seafood stores, and the local Food-Coops where it will be sold at a premium as a uniquely safe and deeply sustainable fresh fish. Locally, Tilapia will be a stand-alone item, with no competition, and will be provided whole on ice to these local fresh markets. However, KEAP’s proximity to the larger cities of Boston, Hartford, and Albany, where there exists a large market for live whole fish (primarily ethnically Asian niche), will
provide an easy back-stop market for any fish not sold locally at a premium. Our financial plan anticipates a balance of the two markets in its pricing assumptions, even though we expect to move the vast majority, probably all, of the small amount of Tilapia produced into the local market at a premium. Dominating KEAP’s operational and economic interests and activities will be our packaged herbs and salad mixes. Basil, and other high value herbs grow extremely well in an aquaponic system capable of providing ample heat and light year-round. Herbs provide a premium product for KEAP and market entrance is enhanced by timing initial product to market in the late fall as other sources, especially for local herbs, drop off. In 2012 we tested several pallets of basil in one-ounce clamshells in regional stores including Price Chopper and local Coops with clear success and pre-established relationships and markets with several of the regional distributors -- Shaw’s Supermarkets, Albert’s Organics, and a local pesto-maker. Our aquaponics system delivers a higher oil content and longer shelf life that sets the product apart and assures ability to hold shelf-space once captured. Additionally, strong branding through labeling and pointof-purchase display materials highlighting the Local and Sustainable aspects of this product improve its value to the retailer. Consistent supply and quality coupled with ease of order and delivery logistics will appeal to produce buyers. However, herbs do have strong competition from other suppliers, some regional/local, and many organic. Therefore, KEAP can only assume a small share of the regional market (less than 10%) and has forecast both sales volume and price according to an anticipated competitive market. Salad Mixes in 10 ounce clamshells: The Lettuce/Salad Market According to a 2012 market study conducted by the Department of Applied Economics, University of Minnesota: “In terms of value, lettuce is the leading vegetable crop in the United States, with more than 90% of lettuce production located in California and Arizona.” The study also observes a dramatic shift to ready-to-eat packaged salad mixes and a rapidly growing market for convenient, healthy food choices. We have already observed the strong growth in the local food market. However, local supply of this product is very limited, as a percentage, almost non-existent. KEAP
sees this as a tremendous opportunity to bring “Local” to the fresh product in highest demand. And with our unique ability to provide steady year-round production at the highest quality, at competitive production costs and reduced distribution costs, we feel that demand will be an order of magnitude larger than KEAP’s entire production capacity. Another significant market advantage is KEAP’s real and perceived improved control over food safety. The Salinas Valley California lettuce industry has been rife with food-born pathogen issues and recalls – nearly on a regular basis. Frenetic reactive attempts to control these issues and significant investment in damage control PR have done little to prevent the continued occasional, but significant, outbreaks of food poisoning from their fieldgrown and immigrant labor picked and packaged products. KEAP’s growing processes and facilities eliminate the origin of these pathogens and manage all processes from seed through harvest, and all washing and packaging within a certified controlled environment, by food-safety certified employees. Accountability and traceability are unparalleled and distribution is local. Nonetheless, the KEAP financial model does not even call for a significant premium for this superior product with Local, Sustainable, and FoodSafe branding, placing its price between the California commodity product price and organic pricing. We feel here will be a great opportunity to expand this business and seek future additional growing and processing capacity. Once again, KEAP will enter the market at the end of the local farm season, providing a welcome addition to maintain Chain and Food Services “Local” branding, and improving ease of initial market penetration. Don McCormick intends to leverage existing market and distribution relationships to successfully bring a superior ready-to-eat salad clamshell product to market. For all KEAP products, we are priced competitively and will be marketing to Produce Managers as “champions” for our brand. We will be creating “Produce Manager Packets” to help introduce our brand to them. We will also develop a full complement of POS material for individual stores. This will include storyboard type advertising to the consumer that tells the story of KEAP’s innovative and sustainable energy and food production model. This is an effective way to get support from the individual department managers and create “brand champions” in each store we are in.
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PROJECT OPERATIONAL & FINANCIAL PLAN
The KEAP Food Production Plan KEAP will produce 495,760 pounds of produce per year and 66,000 pounds of fish. Basil: 64,560 pounds (sold in one-ounce clamshells) at $16.00/lb. Specialty Lettuce mixes: 180,000 pounds (sold in 10 ounce clamshells) at $3.98/Lb. Whole Tilapia- Whole – Sold Live, Sustainably Raised - at $2.50/lb. Sustainable Basil – packaged in 1 ounce clamshells – 1,032,960 Units/year will wholesale at $1.00 each (assumed retail at $2.00 each). Sustainable Salad Mix- A variety/mix of lettuces from Bibb to Oak leaf will be produced and packaged in pre-washed ready-to-eat 10 ounce clamshells – 689,920 Units/year will wholesale at $2.49 each (assumed retail at $4.99 each). The planned vegetable crops have been selected based upon growing cycles, demand in market and those that are most suited to this type of aquaponic propagation system. The KEAP facility is designed to allow tremendous flexibility and versatility of crop production. And, while the chosen crops of Basil and Salad Mixes were carefully considered and selected following extensive research of market trends, regional supply and demand pressures and produce buyer preferences, KEAP is capable of modifying or transforming itself toward the production of any of a number of high-value or emerging-demand products. Examples of products and capabilities include: germination to seedlings (starts) for other producers or wholesalers on a seasonal basis; high-heat/highlight demand premium crops including: peppers, cucumbers, tomatoes, and eggplants; hanging and potted ornamentals; micro-greens and other high value ornamentals and herbs; and specialty nutraceutical herbs, flowers, and plants. Collectively, this significantly reduces, if not eliminates, long-term risk of loss or failure due to drift in market trends. The expertly engineered facility, and the benefits of subsidized heat and power, transforms the business into a versatile production system for highly controlled, food-safe, high-value crops.
KEAP will use only proven industry propagation cultivation and harvest practices, but introduce the benefit in quality and in cost reduction of a living organic nutrient produced from augmented fish-culture water and digested effluent. This proprietary approach has been developed and proven over the last 14 years in active trials, delivering the highest quality product as determined by the top Chefs in New York City. Higher oil content in herbs, richer flavor and deeper colors, as well as longer shelf-life have all been accomplished through these improved organic nutrient development and delivery design. Coupled with state-of-the-art growing facilities and equipment, and controls and monitoring equipment, the overall production system is superior. Year round production using short rotation cycles, a strict bio-security plan, and a culturecontrolled environment minimizes exposure to significant crop loss due to disease. This facility is designed with multiple and completely separate growing zones and nutrient cycles, allowing the flexibility to change and isolate plant production areas, for research, product development, or, if need be, in response to a disease outbreak or other operational or mechanical setback. We will be using highest quality, organic supplements and seeds in the propagation of all plant stock. And, above all, staff training and clearly developed policies and operational procedures – instilled in company culture – ultimately assure the best form of quality and production assurance. Aquaculture at the Keene Energy and Agriculture Project Facility KEAP will install and operate industry proven, state-ofthe-art aquaculture equipment in its systems. Because this system treats and recirculates all water used, its environmental impacts are significantly reduced compared to other types of aquaculture technology. Our facility is designed to include the following components and design criteria: • Round or cylindrical tanks to maximize fish densities and allow more uniform water quality through efficient waste removal and oxygenation. • Fluidized Biological Filters for propagation of beneficial aquatic bacteria. These bacteria convert metabolic nitrogenous waste (ammonia and nitrite) to nitrate that can be used by plant and algae production through system integration. • Rotating Vacuum Micro Solids Drum Filters for removing solid waste. Solids (60 microns plus) are removed from the culture system through a low water use vacuum drum filter method.
• Wastewater is collected and processed for use back in the hydroponic plant propagation system. Solids collected from the wastewater are further diverted for composting. • Ultra-Violet (UV) Lights for water disinfection. UV light systems are utilized to lower bacterial counts through high frequency light. This process also clarifies and disinfects water streams for return back to culture water. • Energy efficient pump selection - use of VFD’s (Variable Frequency Drives), Pressure Transducers. • Low Head Oxygen Tower, used to deliver saturated oxygen into culture water to maintain a healthy, low stress environment for fish, while achieving maximum stocking densities. • Activated Carbon System for water purification - activated carbon systems are implemented throughout the integration process to remove impurities to further purify system water. • Rainwater collection system to collect and divert water from greenhouse roof gutters to 50,000 gallons of cisterns for system water makeup. The water is preheated with waste heat from the power plant at peak sunlight hours and stored for nighttime thermal radiant gain. • Controlled Environment Agriculture (CEA) water and air temperature monitored and adjusted for optimal growth of all aquatic organisms. Heat source supplied by waste heat produced by on-site generation of electricity, and a direct-burn boiler. The system is designed with the redundancy of a back-up generator for potential power loss, and a back-up boiler, both fueled by propane, both rarely needed. Growing area is cooled by low energy, passive airflow roof venting and reflective shade cloth and energy curtain, all monitored and controlled automatically. • We anticipate eventually building on-site fish hatchery to ensure year round production, highest quality seed stock, and biosecurity. All critical parameters in the life support systems for aquatic organisms are monitored and alarmed 24 hours a day. Water quality is monitored throughout the day, and adjusted for optimum growing parameters to assure health, growth and quality of crops.
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PROJECT OPERATIONAL & FINANCIAL PLAN
Aquaculture Industry Outlook The aquaculture industry continues to grow as wild fisheries continue to decline and demand for seafood increases. Aquaculture now supplies over 46% of seafood in the market today. As need for fish protein continues to grow globally, so does the need for responsible sustainable food production methods. KEAP will implement an environmentally sustainable recirculating aquaculture system (RAS) that will efficiently produce 66,000 pounds of fish annually. The RAS system will be a low water-use system, replacing less than 1% of its culture water per day. Replacement water for the RAS will come from the onsite rainwater collection system. In the future, the sustainable aquaculture systems and methodology will be used to trial algae replacement fish feed trials and train individuals and organizations at the KEAP Research and Training Facility on aquaculture best management practices. Species Selection KEAP will begin operation with the propagation of Tilapia. This very popular white-fleshed fish is a well-suited fish species for aquaponic production, largely due to their ability to utilize a low fishmeal diet and produce a high nutrient waste for plant production. Tilapia fingerlings are readily available for year round production and commonly breed in indoor systems. The facility will produce 66,000 pounds annually at an average of 1.5 pounds per fish. Don McCormick has met with Dr. Stephen Hall, the Director General of the World Fish Center (WFC), and
had discussions on developing an on-site tilapia hatchery using WFC’s “Gift Fish”. These fish have been selected over several generations for increased growth and higher male population, which allows fast growing fish for higher yearly output. These fish were developed to serve as a tool to increase protein availability via aquaculture in underdeveloped countries. The KEAP facility would assist by housing brood stock for risk mitigation and continue to breed and improve the line under the guidance of WFC. If this partnership is formed, fingerlings will be produced and used by our production facility and shipped to WFC’s worldwide projects. Growing Techniques Aquaponics is the use of a filtered side stream of nutrient-enriched fish culture water for the propagation of vegetables and aquatic plants. Excess nutrient enriched system water is further utilized to assist in the propagation of algae, leaving the water “polished” for return to the aquaculture system in an efficient closed loop system that eliminates waste. Multiple types of growing techniques will be utilized at the facility, including the two most successful: • Nutrient Flow Technique (NFT): Using a gutter channel system to hold plants, a stream of enriched fish culture water passes through and over plant root system delivering essential nutrients for fast growth and optimal production year round.
enriched fish culture water continuously passes through. • Drip Irrigation: Nutrient-rich water is piped to plant buckets and dripped into them. Integrated Pest Management Pests are managed through an Integrated Pest Management (IPM) program that includes continual monitoring of pest levels and treating with biologics, such as ladybugs, nematodes or white wasps. Use of organic sprays may also be utilized to insure highest quality of crops Algae Culture While a separate business that operates financially independent of KEAP, the KEAP Algae program will have facilities and integration with the KEAP Facility that will bring great value in demonstrating integrative technologies and attracting research and training collaborations as well as greater public interest. Research work with Dartmouth College in Hanover, New Hampshire, on replacement of fishmeal and fish oil, using algae (grown at KEAP) for protein replacement and increasing omrga-3 fatty acid profile in tilapia will take place at KEAP providing feed and scientific support for fish health and cultivation techniques. Algae will also provide a water polishing system role that will significantly improve system health and is expected to lead to a proprietary system technology which can be developed and marketed in the future.
• Raft or Floating culture: Plants are grown in a floating raft, suspended in a flow-through raceway, where Proposal Keene Energy and Agriculture Project 04.10.2014
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Proposal Keene Energy and Agriculture Project 04.10.2014
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04 THE KEAP MARKETING PLAN
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THE KEAP MARKETING PLAN
The Growing Local Food Market According to the Congressional Research Services report on “The Role of Local Food Systems in U.S. Farm Policy” delivered to U.S. Congress March 12, 2013; local food sales and demand continues to grow, and was $4.8 billion in 2008. $0.9 billion was sold directly to consumers through farmers markets, farm stands, and Consumer Supported Agriculture (CSAs). The remaining and significantly larger portion of $3.9 billion was sold through grocers, food service, and regional distributors. Interesting, the 71,200 farms/producers supplying the $0.9 directmarket was many times greater than the 13,400 farms/ producers supplying the $3.9 billion, and at the core of this imbalance is a great market opportunity for KEAP, with its scale and marketing strengths aligned with the grocers, food service, and distributors market. Demand in the grocery, food service and food distributors market is large and growing, and the producers’ ability to fill it is limited. And the current local food market represents only 1.6% of the U.S. market for all agricultural products of $300 billion. Its market share continues to grow rapidly. According to the CRS report, “Locally grown and organic foods are expected to be among the trends with the greatest growth potential in the produce industry.” And they note that major food retailers such as Walmart have stated goals and set milestones to increase purchases and availability of locally sourced produce, meats and seafood to consumers. In fact, a USDA Economic Research Service report (Report number 97; May 2010) sites specific growth commitments from many of the largest chains including the following: Walmart purchases $400 million in locally grown produce, accounting for about 1/5 of produce in summer months and has set a goal to achieve 20% local. Safeway set a goal to exceed 30% of produce from local source purchasing. And announced a pledge to “significantly increase its focus on locally grown produce.” Meijer similarly set a goal of 30%. And Hannaford’s established an online education and interactive map on local food sourcing as part of its growing commitment to local purchasing. This growth in Local demand from Grocers and the food services and distribution industries is driven by consumer interest in local and sustainable food, with roots in a variety of motivating factors -- from health and freshness to environmental and social concern. A number of highquality surveys have been done on both consumer interest in local food and willingness to pay a premium, and all surveys corroborate.
The National Grocers Association – 2011 Consumer Survey Report stated that, “local foods are on the rise as a key determinant in where adults decide to grocery-shop. Some 86% of respondents call the presence of local foods a ‘very/somewhat important’ to store choice, up from 83% a year ago and 79% in 2009. More impressive, the ‘very’ column advances to 45% in 2011, up from 41% in 2010.” The NGA continues to say that “A much higher proportion of people eat locally grown foods than organic foods.” This rapid growth of the Local market, eclipsing the organic market is reflected also in comments from A.C. Gallo, President and COO of Whole Foods following a survey commissioned by Whole Foods showing that “47% would be willing to pay more for fruit, vegetables, meat and cheese produced near their homes” Mr. Gallo is quoted as telling the Huffington Post: “Ten or 15 years ago, the organic label was more important to our customers, but we started to feel, over the last five to seven years, that our customers were more interested in buying produce that’s local.” William Hallman, the director of the Food Policy Institute at Rutgers stated “that the tide has turned away from organics and toward local food in the past-half decade. Local is newer and is more of a hot topic than organic.” Hallman went on to say that “consumers are generally willing to pay about an equal premium for organic and local foods” The Produce Marketers Association commissioned the Hartman Group to survey 1,200 U.S. consumers in August of 2010. The results were summarized as follows: “There were four important macro-trends identified in the Hartman Group study. These are: • An increased drive among consumers to seek out locally grown produce • A growing interest in making purchases from farmers markets • A preference for “fresh” over other formats • Continued power of “health” in driving fresh consumption This implies there is an emerging opportunity for those growers that can invest in local production to capture increased market share and premium pricing from a very loyal customer base.” This same survey goes on to assess consumer perception about the value of Local food, believing it to have higher levels of food safety, higher levels of trust and confidence in the producer, and greatly improved freshness. Freshness has become a driving factor with 36% saying they are buying more fresh vegetables this year, despite the economic down-turn.
And the Food Services Industry is experiencing the same or greater growth in interest and demand for Local Foods. A 2013 Survey by the National Restaurant Association (NRA) of Chefs resulted in the following top 10 trends: 1. Locally sourced meats and seafood 2. Locally grown produce 3. Healthful kids’ meals 4. Environmental sustainability 5. Children’s Nutrition 6. New cuts of meat 7. Hyper-local sourcing 8. Gluten-free cuisine 9. Sustainable seafood 10. Whole grain items in kids’ meals A deeper survey by the NRA notes that: “89% of finedining operators served locally sourced items, and 90% believed it will become more popular.” On the other end of the dining market, known as the “quickservice segment”: “30% served locally sourced items and nearly half believed these items will grow more popular. Locally sourced items ranked third on the list of “hot/trendy” food items in the quickservice segment -- 70% of adults said they were more likely to visit a restaurant that offers locally produced food items. In 2008, Chipotle Mexican Grill, one of the fastest growing quickservice chains began purchasing 25% of at least one produce item for each of its stores from farms located within 200 miles. A broader group of surveys and compilation by the USDA Economic Research Service summarized the same trends over the entire Food Services, Institutional Food Services, and Food Distributor sector. Siting dramatic increase in interest and demand for local and sustainable food in schools through farm-to-school programs, College Food Services Companies, Hospital Food Services and Institutional buyers and distributors generally. “Five surveys of Foodservice Directors identify several motives for local food purchases by institutional food service directors including public K-12 schools, colleges, universities, and hospitals. Desire for fresher produced or increased consumption of fresh fruits and vegetables was important in all of the studies. Support for local farms, businesses and community was the top motivation in three studies.”
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05 REGULATORY COMPLIANCE, OPERATIONS & MANAGEMENT
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REGULATORY COMPLIANCE, OPERATIONS & MANAGEMENT
KEAP Project Permitting and Regulatory Requirements: The following permits and regulatory considerations may or will need to be considered for construction or operations of KEAP. An initial evaluation of the applicability of permits and regulations was made and the following results are based on a project that closely matches the KEAP design outlined in the City of Keene, NH - RFP of 2/12/2014. The award of the EPA’s Climate Showcase Communities Program Grant further necessitates compliance with NEPA Review requirements. Therefore, an introduction to these requirements and anticipated process timeline is also provided.
Regulatory Agency: New Hampshire Department of Environmental Services Alternation of Terrain Permit (NHDES): Only required for disturbances greater than 100,000 square feet (50,000 square feet if it impacts protected shore land). Because the solid waste facility was constructed in 1993 the new project is beyond the ten year phase threshold, which means that KEAP is considered on its own. Therefore, because the project is not expected to alter more than approximately 2 acres which totals 87,120 square feet, an Alteration of Terrain Permit is NOT necessary. Groundwater Management Permit: Landfill post-closure water quality monitoring in accordance with a groundwater management permit (GWP-199009001-K-003) administered through the NHDES Groundwater Management Bureau. Per DES’ Karlee Kenison on 9/24/12, the activity of KEAP will not in any way affect the groundwater monitoring permit. Solid Waste Permit (DES-SW-TP-93-001): Regulates solid waste activity at the RC/TS and closed landfill. Per Wayne Wheeler of NHDES Solid Waste Division on 9/24/12, the SW Rules do not regulate the type of activity contemplated KEAP. Air Resources Permit for Landfill Gas Generator (FP-S0100): Existing landfill gas generator will not be used any differently than it currently is. The only change will be the addition of a heat capture system which does not alter the existing emissions and the air resources permit for the landfill gas generator. Per Sonny Strickland of the
NHDES Air Resources Bureau, there is no effective change to existing practice, therefore a permit modification is not necessary.
assessment/finding of no significant impact (EA/FONSI); and preparation of an environmental impact statement (EIS).
Regulatory Agency: City of Keene
• Categorical Exclusion: At the first level, an undertaking may be categorically excluded from a detailed environmental analysis if it meets certain criteria which a federal agency has previously determined as having no significant environmental impact. A number of agencies have developed lists of actions which are normally categorically excluded from environmental evaluation under their NEPA regulations.
Site Plan / Subdivision: Required. Application is initiated with the Planning department who will also make a determination on Hillside development ordinance compliance (Steep Slope). The process takes approximately 6 weeks if all necessary items have been submitted. Can be done concurrently with application for building permit. Complete plan designs need to be provided and either submitted to the City for either inhouse review, or 3rd party review. Building Permit: Required. Can be done concurrently with application for Site Plan approval. Combined Site Plan and Building permit fees are based on construction and building cost at a rate of $9.00 per thousand. The current proposed budget for KEAP is approximately $1.2MM for site and building construction, indicating a permit fee of $10,800. This fee may be reduced by 40% ($4,320) by opting for third-party review of plans. Building design must meet snow load and wind requirements, and will likely require ADA compliance. The facility will easily meet Energy Code requirements. Zoning: The City of Keene Solid Waste Facility is zoned rural. Leon Goodwin met with Gary Schneider of Code Enforcement, and after confirming that the transfer station property is located in the Rural Zone, determined that the Carbon Harvest proposed greenhouse/aquaculture would be permitted in the Rural Zone. Fire Department and Health Department: These agencies to be consulted to ensure building design and operational plans comply with requirements and best practices for safety.
Regulatory Agency: Environmental Protection Agency
• EA/FONSI: At the second level of analysis, a federal agency prepares a written environmental assessment (EA) to determine whether or not a federal undertaking would significantly affect the environment. If the answer is no, the agency issues a finding of no significant impact (FONSI). The FONSI may address measures which an agency will take to mitigate potentially significant impacts. • EIS: If the EA determines that the environmental consequences of a proposed federal undertaking may be significant, an EIS is prepared. An EIS is a more detailed evaluation of the proposed action and alternatives. The public, other federal agencies and outside parties may provide input into the preparation of an EIS and then comment on the draft EIS when it is completed. If a federal agency anticipates that an undertaking may significantly impact the environment, or if a project is environmentally controversial, a federal agency may choose to prepare an EIS without having to first prepare an EA. After a final EIS is prepared and at the time of its decision, a federal agency will prepare a public record of its decision addressing how the findings of the EIS, including consideration of alternatives, were incorporated into the agency’s decision-making process.
The NEPA Process: The NEPA process consists of an evaluation of the environmental effects of a federal undertaking including its alternatives. There are three levels of analysis: categorical exclusion determination; preparation of an environmental Proposal Keene Energy and Agriculture Project 04.10.2014
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REGULATORY COMPLIANCE, OPERATIONS & MANAGEMENT
EA And EIS Components: An EA is described in Section 1508.9 of the CEQ NEPA regulations. Generally, an EA includes brief discussions of the following: • The need for the proposal • Alternatives (when there is an unresolved conflict concerning alternative uses of available resources) • The environmental impacts of the proposed action and alternatives • A listing of agencies and persons consulted. An EIS, which is described in Part 1502 of the regulations, should include: • Discussions of the purpose of and need for the action • Alternatives • The affected environment • The environmental consequences of the proposed action • Lists of preparers, agencies, organizations and persons to whom the statement is sent • An index • An appendix (if any) The EIS and NEPA process typically requires about 2 months to complete. Operational Regulations As a landfill gas energy plant, KEAP operations will need to meet existing DES requirements both for compliance with the City’s existing Solid Waste Permit, and with DES and Title V Air quality regulations. The project as proposed will not adversely affect nor reduce the effectiveness of the current gas management systems, not the air emissions of the generation plant or flare (will likely improve them).
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06 LEAD DEVELOPER & OPERATING STAFF
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LEAD DEVELOPER & OPERATING STAFF
The strength of experienced leadership and the country’s top technical experts in sustainable food systems. The KEAP management and technical team is unparalleled in the country in depth, experience and commitment to building and successfully operating each component of the KEAP facility, operations, and market. As a landmark food and energy project, KEAP has attracted the best. Not only do the technical, design, development, and management team have proven experience as top in their technical field, but each comes with a commitment to the project’s mission as a whole, to building sustainable food and energy systems which function more efficiently and intelligently through integrations. Each member of the leadership team also brings a commitment to the triple bottom line philosophy of People, Planet, and Profit, and understands deeply how to provide working environments and operational practices which nurture all three of these pillars of sustainability.
Local Farms Project Corporate Organizational Chart Don McCormick President Dean Lizotte CFO Systems Design Engineer
Joe Swartz Corporate Grower Greenhouse Systems Engineer
Rik Ekstrom Development Director
Douglas Drennan James Ebeling Aquaculture Systems Engineer Corporate Aquaponics Director
KEAP Organizational Chart Reporting Structure Don McCormick General Manager Marketing and Sales
Outside Services Marketing, Training, Trade Technical Consulting
Institutional Partners Research and Education
Outside Services Accounting, Legal, Operating Dean Lizotte CFO Administrative COO
Office Administration General Bookkeeping
Labor Teams Seeding, Harvesting, Packaging, Shipping, Cleaning
Hydroponics Technician
Joe Swartz Operations Manager Grower Systems Supervisor
Labor Team Leaders (2)
Tim Taylor Facility Engineer Ag and Energy Facilities
James Ebeling Aquaculture Engineer Operations
Aquaculture Technician Water Chemist
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Don McCormick, President Local Farms Project Don McCormick is the founding partner and visionary behind the Local Farms Project, and a leader in sustainable food production in New England for over fifteen years. As the founder and president of Carbon Harvest Energy in Burlington, Vermont in 2008, Don was the lead designer and developer of integrated renewable energy and sustainable food systems for communities in Vermont, New Hampshire and New York. Don engineered and managed the successful operations, vegetable production and marketing, of a state-of-the-art integrated growing facility in Brattleboro Vermont. He and his team created, promoted and successfully launched “The Local Farms Project� brand, with market penetration into Price Chopper, Shaws, and Stop and Shop Grocery Chains, as well as regional co-ops. The Brattleboro integrated system performed according to engineered design, and met market and business plan projections. Between 2008 and 2013 Carbon Harvest raised $6.5 million for enterprise start-up operations and project financing, while working with other municipalities to develop and plan innovative integrated food and energy systems. Don worked with a number of partner municipalities, including Keene, to propose and plan all project elements, while working with community stakeholders in a collaborative design and planning process. He and his team managed system engineering and design for greenhouse and hydroponic/aquaponic growing systems and energy plant and heat integrations for a number of these proposed projects. Don has vast experience managing agricultural business planning, hiring and the training of facilities’ management teams. Prior to founding Carbon Harvest Energy, Don McCormick owned and operated Laughing Duck Farm, a sustainable aquaponics greenhouse business in Westport, New York. Don wrote the business and marketing plans, secured funding, and designed, engineered, and managed a succesful tilapia and microgreens business. In 2007 Don also served as the Interim Executive Director of the Intervale Center in Burlington, Vermont. Don McCormick has extensive experience in commercial facilities development and management reaching back over thirty years. Don is frequently invited to speak at industry, green business and environmental forums.
Dean Lizotte, Chief Financial Officer Local Farms Project Dean Lizzotte has over thirty years of experience managing the financial operations of complex commercial enterprises and financial services firms. Over the course of his career, Dean has provided leadership and management expertise to accounting and financial services firms, as well as technology and light manufacturing leader Hypertherm. In 1997, after ten years as a founding partner in the accounting firm of Lizotte & Spagnuolo, Dean joined Fechheimer Brothers Company, a subsidiary of Berkshire Hathaway, as Chief Financial Officer. At Fechheimer Brothers Dean was responsible for all treasury, financial reporting, legal, risk management, human resources, and information systems functions. In 2003 Dean Lizotte was asked to serve as Chief Financial Officer for plasma- and laser-cut services leader Centricut, soon to be aquired by Hypertherm, Inc. Dean directly managed the division’s financial, human resource, information systems, and risk management functions, while positioning Centricut for sale. Dean was subsequently tasked by the new ownership to become Director of North American Sales. In 2003 Dean took over general management of the division as Business Unit Leader. While running Centricut, Dean Lizotte provided leadership for eight departments including sales, marketing, operations, product development, and all back office functions. He led development of annual operating plans and revenue and expense budgets. He served as toplevel contact person for key business partners worldwide, traveling extensively to support relationships. He executed plans to assimilate the subsidiary into the parent company. He restructured the North American sales group and transitioned worldwide sales responsibility to the parent company sales teams. Dean rebranded the product line as an endorsed brand, and repositioned the subsidiary with a new business team. Dean Lizotte is a A hands-on, results-oriented leader with entrepreneurial instincts, sound business judgment, extensive financial skills, excellent communication skills, strong ethics, and the proven ability to produce extraordinary results. Personable, energetic, compassionate, and equally comfortable in the board room, back office, or in front of an audience. Proposal Keene Energy and Agriculture Project 04.10.2014
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Joseph Swartz, Corporate Grower Local Farms Project Joe Schwarts is a Master Hydroponic Farmer with over 49,000 hours of greenhouse production time - 28 years of commercial production and marketing experience operating a year-round pesticide free hydroponic vegetable and herb facility. Joe earned a bachelors degree in Agriculture Business Management from the University of Massachusetts’s Stockbridge School of Agriculture. In 1986 he was introduced to, and received guidance from Dr. Pieter Schippers of Hydro-Harvest/Hydroponic Growing systems, Ashby, MA. Dr. Shippers was formerly the lead research associate at the Cornell University hydroponics research facility in, Long Island, New York. During his distinguished career, he was credited with pioneering the variable-spacing NFT hydroponic system, which is still commonly used in commercial production today. In 1986, under Dr. Schipper’s tutelage, Joe Schwartz designed and built a 4,390 square foot NFT hydroponic lettuce production facility in Amherst, MA. Joe’s innovative design improvements included a custom tiered seedling production system, manifold feed supply system and controlled environment germination chamber. For nearly thirty years Joe has owned and operated the Swartz Family Farm, an integrated hydroponic vegetable and herb production facility. Joe still oversees this yearround, pesticide free growing operation. The farm utilizes both soil based vegetable production (conventional and organic) during the standard growing season, as well as year-round, pesticide free hydroponic growing technology. This farm is the longest-continually running hydroponic farm in the Commonwealth of Massachusetts. Joe Schwartz has offered professional design, guidance, and training to commercial controlled environment agriculture businesses worldwide through Hydroponic Consulting Services,. He has advised clients across North America, Europe, the Middle East, and the Caribbean. Added to his diverse scope of services, Joe also offers professional grower training at his farm in Western Massachusetts and consults in business appraisal/assessment for investors evaluating ventures in hydroponics.
James M. Ebeling, PhD, Dir. of Aquaponics Local Farms Project James Ebeling has been involved in aquaculture for over 25 years and has cultured over 20 species of fish. Dr. Ebling spent three years at the Mariculture Research and Training Center, University of Hawaii as a research coordinator, and one year as project manager for the design and construction of the “Fish Barn� at the North Carolina State University. Jim also spent five years as a research and extension associate at the Piketon Research and Extension Center, Ohio State University, Piketon, Ohio where he was responsible for design, construction, and maintenance of the aquaculture facilities and for maintaining the fish as well as for the Center Aquaculture Extension Program. He spent six years at the Conservation Funds Freshwater Institute as an Environmental Research Engineer, working in basic and applied research as well as the application of monitoring and computer control to biological and aquatic ecosystems. Most recently, Dr. Ebeling was employed as a Research Engineer by Aquaculture Systems Technologies, LLC, New Orleans, LA, conducting research as part of several Small Business Innovative Research grants on denitrification, waste management and system engineering and design. Jim Ebeling has a B.S. and M.S. in physics from Albion College in Albion, Michigan and Washington State University in Pullman, Washington, respectively. He has a second M.S. in agricultural engineering from Washington State University and has three years of formal training at the University of California, Davis in aquacultural engineering. He obtained his Ph.D. in Biological Resources Engineering from the University of Maryland, College Park, Maryland, where he worked on the kinetics of biofilters operating on aquacultural systems. In November 2006, Dr. Ebling was selected as a Fulbright Senior Specialists Candidate (Council for International Exchange of Scholars, Washington DC).
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Rik Ekstrom, Director of Development Local Farms Project Rik Ekstrom brings over twenty years of design, development and brand experience to Local Farms Project. As Director of Development, Rik identifies opportunities, manages due diligence, and implements the design, execution and marketing approach to integrated food and energy projects for Local Farms Project. Rik ensures that Local Farm Project’s vision and mission are realized through all phases of new projects. Rik Ekstrom is also the founder and managing partner in the New York-based research and design firm ARExA. ARExA brings a multi-disciplinary approach to understanding problems and opportunities within the built and natural environments. Working in the fields of architecture, urban design, urban agriculture and applied technologies, ARExA’s team of architects, designers and research consultants have contributed to a broad range of projects, including mixed-use urban development, a teaching greenhouse-laboratory, and the ongoingTroy Mills Sustainable Food Center project in Troy, New Hampshire. Rik is a builder and teacher with over twenty-five years of experience and over 100 built projects in the United States and abroad. As a student at the University of Virginia’s School of Architecture, Rik helped found the Mayors Institute for City Design before going on to coordinate MICD at the National Endowment for the Arts in Washington DC for two years. In 1991 Rik co-founded the oculus group + groupWORKS construction, a design/build practice in New York City dedicated to integrating craft and collaboration more directly into the design process. Ten years later Rik joined the internationally recognized architecture firm Skidmore Owings & Merrill (SOM) where, as a design team leader, he applied his background of building and design to the practical integration of the technical and design studios, while managing $1 billion of work over seas. Rik also worked for Woods Bagot Architects in New York, where he managed projects within the firms’ Education and Science practice. Rik Ekström is an adjunct professor at the School of Visual Arts in New York, an Associate member of the American Institute of Architects, and a member of the United States Green Building Council and the Society of College and University Planners.
Douglas G. Drennan II, Aquaculture Engineer Local Farms Project Doug Drennan is a prolific writer, teacher, researcher and entrepreneur in the field of aquaculture. His career has spanned over thirty years. Doug has directed a number of important research teams as Principal Investigator and has contributed greatly to our current understanding of this complex discipline. Doug Drennan received his B.S. from the University of New Orleans (1987) in Biology with a minor in Chemistry, and an M.S. in Wildlife Ecology (Aquaculture) with a minor in Fish Genetics from Mississippi State University (1992). In 1991 Doug joined the Civil Engineering Aquatics Systems Laboratory at Louisiana State University as a Level II Research Associate in the Department of Civil and Environmental Engineering under the direction of Dr. Ronald F. Malone. At LSU Doug conducted research into the development and evaluation of integrated, intensive recirculating aquaculture systems, water quality management for recirculating aquaculture systems and was involved in the initial testing and development of the patented Bead Filter Technologies. In 1995, Douglas obtained the manufacturing rights to the Bead Filter Technologies and founded Aquaculture Systems Technologies, LLC to manufacture and market Bead Filters. The company has since expanded it’s product line to offer other specialized equipment for use in the intensive culture of animals in closed recirculating aquaculture systems. Douglas has also been instrumental in promoting aquaculture as a teaching tool to secondary and vocational schools. Douglas has authored several peerreviewed publications and numerous conference papers on recirculating aquaculture systems as well as presented scientific papers at numerous national and international conferences. Doug serves on numerous committees and organizations including the World Aquaculture Society, the American Fisheries Society, the AFS Student Affairs Committee and Aquaculture Committee, the American Tilapia Association and the Aquaculture Engineering Society. Douglas was elected to the Board of Directors of the U.S. Aquaculture Suppliers Association in 1997 and currently is serving his final year as President of that organization. In 1998 Douglas was elected to the Board of Directors of the National Aquaculture Association and is currently serving his second term on the board.
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KEAP Staffing
General Manager
Designer and Initial Developer for KEAP: Don McCormick has a deep knowledge of business development combined with over 20 years of entrepreneurship, management and engineering expertise in the manufacturing, sales and financial fields. He has extensive knowledge of greenhouse systems, hydroponic and aquaponic systems, alternative energy and sustainable inputs, and in agricultural business development with a foundation gained from building, owning, operating, managing, and consulting for agriculture and manufacturing companies. Don has designed manufacturing systems and equipment and engineered flow designs for manufacturing efficiency. Don recently served as Interim Director of the Intervale Center, Vermont’s prominent local food and agriculture system builder and then owner of the state’s largest organic waste composting facility. He also designed and built a sustainable aquaponics business, Laughing Duck Farm, for producing year-round food (micro-greens and tilapia) in a cold climate. He designed the greenhouse to use all renewable energy inputs (solar hot water and hydropower electric and heat) and eliminated waste by using a closed-loop water system, incorporating fish byproduct into plant nutrient and high-value compost. He later founded and built Carbon Harvest Energy, LLC, which built an innovative and advanced integrated food and energy system in Brattleboro Vermont off of the closed landfill. Through Carbon Harvest, Don designed additional projects in the region, including the initial design and early development process in Keene. Carbon Harvest Energy suffered an internal collapse with partners and investors, which forced its close in 2013. However, the research, key relationships, and design and operations knowledge continues forward in this work with the original designer and the weight and wisdom gained from the successful development and start-up of a fully integrated system.
Overarching responsibility for the business. Administrative head of KEAP, Manager of lead staff and responsible for the fulfilment of the founder/owner/president’s vision and mission. Reports directly to the President. Qualifications include: proven track-record of senior management and business management with strong financial background. Preference for related agricultural field and understanding of Controlled Environment food production operations and fresh produce markets. This position will be part of the strategic planning team, setting goals and budgets, and then work to ensure that all essential functions of the company are accurately monitored and timely reports generated. Translating goals into action and planning with the lead team, and maintaining an environment for successful achievement of these goals will be at the center of this job. This will additionally require establishing and maintaining excellent relationships with key external support through outside services, key partners and stakeholders, and the community. The successful General Manager will be indistinguishable from the vision of the company in daily action and attitude, and be personally passionate about this vision. The General Manager will be ultimately responsible for the financial clarity and success of the company, set the tone and insure proper management for human resources, and represent the company – along with the President – to the world at large.
At this phase of the Business Plan Development, it is our goal to establish the design, financial model, and operational considerations for a viable project at Keene. This includes understanding the roles and qualities of staffing for the KEAP, including management, technical staff, and labor. The following positions are clearly identified, and ongoing relationships built in the industry will help guide the acquisition of the required talent. It was learned in the last two integrated projects that there is highly qualified technical talent available and that these people are strongly attracted to the sustainability initiative and strong business plan of this integrated food-energy approach.
Grower – Systems Supervisor Responsible for growing operations and systems, reporting to the General Manager, experienced and knowledgeable in greenhouse production of hydroponic produce and management of production staff from seeding through harvest, packaging, and delivery; the Grower will be hands on in KEAP’s operations and staff development and daily supervision. The grower will have formal training and several years of experience in hydroponic production of herbs and greens – preferably, lettuce and basil specifically. Qualifications and skill requirements include: understanding of basic controlled environment facility functions, hydroponic equipment operations and nutrient management regimes, basic plant science and pathology, integrated pest management protocols, and proven experience and excellence in leading production workers. The Grower will need to develop additional knowledge and skills in basic aquaculture and the critical system linkages between the
aquaculture and hydroponic systems. This position will require an eagerness to increase knowledge through both formal technical training and self-study. The Grower will directly hold the social mission for the company with respect to ensuring the creation and maintenance of a respectful, safe, and fulfilling work environment. This position will have four direct reports: The Hydroponics Technician, The Aquaculture Technician/ Water Chemist, and the two Labor Team Leaders. However, the Grower will maintain overall responsibility and have constant interaction with the entire Labor Team – empowering and supporting the Labor Team Leaders in their daily direction of the Labor Teams, while being present and available to every member of the Labor Team. The Grower will ensure the timely fulfillment of orders and scheduled pick-ups or delivery, and will be ultimately responsible for maintaining the highest standards in product quality. The Grower will become fully trained in GAP and possibly HACCP food safety and operational standards and establish and deliver all protocols, ensuring the staff training and all operations fully comply with standards. The Grower will have the support of outside consulting services to establish and initiate these standards, but will ensure their ongoing successful application. The Grower will be supported by and have access to the Facility Maintenance Manager and outside services for water chemistry and nutrient management, integrated pest management, and plant pathology diagnosis and protocol development. Facility Maintenance Manager Responsible for the facilities and all mechanical systems, as well as developing and managing a strong preventative maintenance program; reporting directly to the General Manager. Responsibility for the maintenance and mechanical operation of all agricultural equipment and the landfill gas to heat and power facilities and equipment. Fully responsible for managing the landfill gas collection system and wellfield tuning so as to provide the best possible quality and highest steady quantity of gas to the CHP plant. The Facility Maintenance Manager (FMM) is also the CHP plant operator, ensuring the greatest possible system up-time and careful cycling and protection of critical heat and power needs by the agricultural facility (as well as the needs of the City facilities). The FMM will ensure that the wellfield and gas collection and control systems (GCCS), as well as CHP
plant operations comply with all regulatory requirements. The FMM will be a meticulous record keeper and generate regular reports for the GM and create a well-organized archive of all information and history of the equipment and systems as well as the maintenance history and plan management, and the GCCS and CHP plant operations and inputs/outputs. While the FMM will report directly to the GM, it is expected that the FMM will be capable of reacting quickly and directly to the needs of the Grower, and/ or the Hydroponics or Aquaculture Technicians as they will all work closely with equipment, and some of this equipment’s operation is at life-support level for crop and livestock. The qualified candidate will have at least 5 years of significant, related, and broad mechanical/ technical capabilities in the required fields; especially hands-on experience with reciprocating engines, pumps, and basic electrical and control systems, as well as building maintenance and industrial HVAC. Ideally, the FMM will be a part of the initial construction, and to some extent the design team, to help bring practical knowledge of mechanical details and future maintenance considerations to the design, and become infused with a deep understanding of all equipment and systems. The ideal FMM candidate will have capacity and passion for ongoing value engineering to constantly tweak and improve all systems for reliability, efficiency, and overall performance. Office Administrator/Bookkeeper Responsible for all basic daily administrative routines as assigned by and supporting the General Manager, including reception, communications, web and social media maintenance and communication, customer, vendor, and stakeholder relationship and logistical management, scheduling communications and meeting notes, basic regular bookkeeping functions including AR and AP management, first-line HR including records and compliance, and public relations gate-keeper, including scheduling and supporting public outreach and tours. Clearly a broad office and basic administration role with additional bookkeeping functions this role will require and experienced office manager or administrative assistant used to operating in a small and close business where balancing many roles on a daily, weekly, and monthly basis was common. The ideal candidate will have at least 5 years of experience successfully serving the broad needs described and proven oral and written communications skill. Preference will be given for
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candidates who have demonstrated experience with grant-writing or other technical writing and government form and compliance document development and management. While not required, experience or at least interest in green initiatives, sustainability, and local food will be an advantage. The Office Administrator and Bookkeeper will report directly to the General Manager but will, necessarily, regularly and directly interact with all staff and support other managers and team leaders. A quality candidate will have experience in balancing the press of short-term and long-term needs and goals and successfully schedule for the completion of all essential functions – while making it look easy and providing the very first example of a positive and respectful work environment. Hydroponics Technician Responsible for the proper functioning, maintenance, and adherence of the production team to operational protocols which affect the hydroponic and related growing equipment and systems, including lights and basic environmental, as well as all seeding and nursery equipment and systems. The Hydroponics Technician will report directly to the Grower, work closely with the Aquaculture Technician and Water Chemist (particularly in the development and management of ideal plant growing nutrient solutions), and receive mechanical and maintenance support from the Facility and Maintenance Manager. The Hydroponics Technician will keep abreast of hydroponic growing technologies and industry practices, striving to continually improve the operation and yields of KEAP systems. This position will generally support the Grower and may often be tasked with daily implementation of other grower responsibilities closely linked to the Hydroponics Technician’s normal duties and responsibilities, such as ensuring compliance with food safety protocols, and disease management through equipment cleaning, sterilization and handling. The Hydroponics Technician will also work with the teams as a general laborer as needed, especially supporting more technically demanding seeding and transplanting work, or work involving critical equipment and sterilization and biological security and control procedures. The preferred candidate will have at least two years lead hydroponics experience working with similar systems, but a significant investment in KEAP training is expected for this position. The ideal candidate will have GAP training and be able to assist the Grower in implementing and managing GAP and possibly HACCP protocols and compliance, and possibly the integrated pest management program. This
position assumes a genuine passion for growing and the technical approach of hydroponics in a controlled environment. This is a position with strong opportunities for career development and growth. Aquaculture Technician Responsible for the daily management of the recirculating aquaculture system and fish health and productivity, as well as the constant testing, management, and improvement of the living nutrient water in preparation for its delivery to the hydroponics systems, and water quality upon returning to the fish culture water. This position reports directly to the Grower and works closely with the Hydroponics Technician to ensure ideal hydroponic nutrient development and delivery. Responsible for one of the more mechanically complex systems at KEAP and a life-support system for livestock, the Aquaculture Technician will work with the Facility Maintenance Manager to ensure steady and reliable functioning, redundancy/back-up and monitoring of systems, and scheduling and serving as stand-by for 24/7 on-call response to alarms. The Aquaculture Technician’s role is dominated by the understanding and management of water quality, water chemistry, and nutrient balance and development for hydroponic vegetable production. Twice daily testing and manipulation through organic additives will be a regular operational protocol, more frequent during times of imbalance, change, or stress. Proactive and reactive responses to subtle changes in water quality and culture conditions will include careful management of all mechanical and biological filtration equipment and an experienced eye for fish behavior and health. This position will be responsible for the daily fish farming operations including acquisition of fry, grading/ culling and separating fish by size during growout period, feeding and health management, cleaning and system management, and harvesting and packaging for shipment/delivery (with support from the Labor Team as/ when required). This position requires technical training in aquaculture science and water chemistry, and at least three years of operating in a similar role(s) at a commercial recirculating aquaculture facility. The preferred candidate will have technical mechanical and system design experience and knowledge to possibly help design and value engineer the recirculating aquaculture system and/ or minimally deeply understand its mechanical operations and basic hydraulic principals. The ideal candidate will share a passion for sustainability in fisheries and aquaculture and actively learn and participate in the algae feed research and development program – and possibly
have an interest and affinity for growing greens as it may improve understanding of the nutrient development as it pertains to plant health and productivity. Significant ongoing training and education support will be provided to this position, leading to strong career development in an emerging and growing technical field. Therefore, this position requires and expects strong study skills and a commitment to self-motivated independent learning as well as active participation in the aquaculture trade. Labor Teams and Labor Team Leaders Production Labor Teams will be formed, grouped and ungrouped daily and weekly according to production cycles, shipping schedules and daily need under the direction of the Grower. Labor roles will include: cleaning, seeding, transplanting, harvesting, light product processing (trimming and washing), packaging, and shipping. Other light duties of materials receiving, grounds maintenance, building cleaning, and similar tasks can and will be assigned. Basic physical health, tolerance of greenhouse environment and full days standing, and an ability to lift 50 pounds will be generally necessary; with exceptions made and special roles potentially developed to provide opportunities for people with disabilities as possible. 17 labor positions are planned plus two Labor Team Leader positions. These Labor Team Leaders will receive daily direction and goals from the Grower, and the Labor Team Leaders will then work with their teams to organize specifically to the efficient accomplishment of the tasks while participating fully in the labor. Team and Team Leader incentive programs will be set that augment base pay with bonuses based on team performance and the team’s assessment of Team Leader performance. Bonus systems will be carefully constructed to provide incentive and fun competition with tangible reward, while controlling for any adverse effects of competition or sense of failure. Great effort will be made to ensure that employment at KEAP will be viewed as a privilege, leading to abundant applications from qualified individuals with strong employment histories. Ideally, (and from experience) KEAP will attract candidates with passion for growing and sustainable initiatives. Preference will be given to candidates with demonstrated ability to not only work as a team, but bring quality to the team environment. Manual dexterity and ability to work hard will be essential qualities. KEAP will strive to create opportunities for growth within the company to the extent reasonable. KEAP will also try to accommodate flex schedules to support individuals and families with scheduling challenges, but will do so
with clear policy and by pre-arranged agreement only. And, of course, KEAP will be an equal opportunity employer, intolerant of discrimination of any kind on any basis within the company or in its hiring practices. Outside Services and Professional Services and Support KEAP intends to contract and rely on professional services and outside consulting for specific technical and professional services and/or infrequent services. Among the contracted services anticipated are: Legal, Accounting/CPA/Tax Accounting, Wholesale marketing brokers, and Web and Art Developers. We have identified and worked with high-quality professionals with proven track-records for these services. KEAP will, additionally, have need of Electrical, Civil and Mechanical Engineering, Recirculating Aquaculture Engineering, Controlled Environment Engineering, Plant and Fish Sciences and Pathology, Food Safety Protocol Development, and other technical support for which KEAP leadership has already established strong technical support and active relationships with some of the region’s (and world’s) top engineers and scientists, primarily through colleges and land-grant institutions, including UNH, Cornell, University of Vermont, Louisiana State Aquaculture Research Station, URI, U Conn, U Mass, The Freshwater Institute, and Dartmouth College (especially the Thayer School of Engineering) are all institutions with whom we have connected and worked, and who have a strong interest in participating in KEAP’s integrated approach to agriculture due to its unique ability to provide valuable innovations and research and educational experiences. Generally, each of these institutions comes with funding and charters to support this work. And, wherever the best services are available through the private sector, we have budgeted for this support. Each of these partners will establish relationships with particular KEAP staff members, under the direction of the GM, as appropriate and supports that staff member’s role. Additionally, and as already mentioned, we have existing partnerships active with Dartmouth College and impending with Keene State College for research and education in algae feed and biofuels research and development.
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07 PROJECT TIMELINE
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PROJECT TIMELINE
Keene Renewable Energy and Integrated Sustainable Agriculture Project PROJECT TIMELINE March 2, 2013 Month Week # Pre‐project Phase: Preparations Keene‐McCormick Contract
Note: * indicates deliverable
Hrs.: 60 Subtotal:
60
Subtotal:
40 80 80 30 10 10 250
Phase II: Initial stakeholder development and planning Food systems leadership and prospective owner/operators Research and education stakeholders Government and regulatory stakeholders Financial stakeholders and assesment of financing capacity and certainty Investor development Development support team development Assembly of letters of support and intent Subtotal:
80 30 50 40 40 20 10 270
Phase I: Pre‐development materials Pro‐forma financial model Draft business plan Conceptual Layout and Site Plan Project presentation materials Identification and generation of key stakeholder prospects Initial evaluation of financing viability and draft financing plan
Phase III: Final lead stakeholder commitment and Business Plan Lead/Owner operator selected and contracts developed Final marketing plan and business plan created Contract between project principals and City of Keene
Phase IV: Financing Achieve financing commitment letters
Total project development through financing (pre‐independence)
Phase V:
Subtotal:
1
2
3
2014 2013 4 1
2
3
4
1
January 2 3
4
1
February 2 3
4
1
March 2 3
4
1
April 2 3
4
1
2
May
3
4
1
2
June
3
4
*
*
*
*
* * *
*
*
120 120 40 280
* *
*
120 $ 120 980
Team, Vendor, Contractor Selection Process
Phase VI: Final Design and Permitting Phase VII: GCCS restoration Phase VIII: Gen plant overhaul; operator selection and training Phase IX: Final Contractor Selection; Ag construction Kick‐off Phase X: Ag Facility Procurement and Construction Site work and utilities Greenhouse and Headhouse Fit‐‐up Landscaping Equipment Set‐up and connections Phase XI: Ag Facility Operations Startup Management and technical team hired and trained Aquaculture system start‐up Hydroponic system start‐up Process and training with GAP Certification Production Staff hired and trained Vegetable products to market Integration of aquaculture with hydroponics Fish to market Phase XII: Algae Facilities and Project developed and integrated Phase XIII: Ongoing public outreach and education
*
1
2
July
3
3
4
1
August 2 3
4
1
September 2 3
4
1
October 2 3
4
1
November 2 3
4
1
December 2 3
4
1
January 2 3
4
1
February 2 3
4
1
March 2 3
4
1
April 2 3
4
1
2
May
3
4
1
June 2 3
4
1
2015 July 3
2
4
*
* *
* *
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1
August 2 3
4
08 SUPPORTING DOCUMENTATION
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SUPPORTING DOCUMENTATION
Sustainability through community relationships and partnerships. One of the core sustainability principals and a foundation for economic resilience is based on the strength of the partnerships and relationships KEAP has formed and will continue to strengthen with key institutions and stakeholders in the community. We are proud of the partners who strongly support KEAP and enjoy the value we both give and receive through these relationships, which include eminent research institutions, community and state leaders, local food market leaders, and regionally focused financial institutions. By embedding KEAP deeply in our community, we become stronger, while we return value to our neighbors. Letters of support from a number of regional leaders are provided as an addendum to this proposal.
VENDER SUPPORTER: HANOVER CONSUMER COOP SOCIETY
FINANCIAL SUPPORTER: NBT BANK
FINANCIAL SUPPORTER: BANK OF NEW HAMPSHIRE
RESEARCH & VENDER SUPPORTER: ANTIOCH UNIVERSITY OF NEW ENGLAND
RESEARCH & VENDER SUPPORTER: DARTMOUTH COLLEGE
VENDER SUPPORTER: PRICE CHOPPER MARKETS
VENDER SUPPORTER: HANNAFORD MARKETS
VENDER SUPPORTER: MONADNOCK FOOD COOP
VENDER SUPPORTER: KEENE STATE COLLEGE FOOD SERVICE
VENDER SUPPORTER: UNIVERSITY OF NEW HAMPSHIRE FOOD SERVICE
FINANCIAL SUPPORTER: MONADNOCK ECONOMIC DEVELOPMENT CORPORATION
RESEARCH SUPPORTER: UNIVERSITY OF NEW HAMPSHIRE CORPORATE EXTENSION
LEGISLATIVE SUPPORTER: STATE SENATOR MOLLY KELLY
TECHNICAL SUPPORTER: SANBORN HEAD CONSULTING ENGINEERS
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Keene Energy and Agriculture Project Business Plan Analysis November 2013 Robin G. Brumfield, PhD brumfield@aesop.rutgers.edu 610-349-7760 The Background provided: The City has secured $500,000 grant funding from the EPA’s Climate Showcase Communities Grant Program. And $850,000 of additional favorable development funding has been pre-identified to assist the development of KEAP. The City and the Lead Designer/Project Developer are now seeking qualified owner/operating partners and financing to fulfill the project. Summary The Keene Energy Agriculture Project is a public-private partnership that provides locally produced vegetables and tilapia in an environmentally sustainable manner while providing local jobs. One of the goals is to create a model for replication in other communities. The public private partnership is appropriate because most of the eight benefits listed benefit the public and include job creation, research, education, and environmental stewardship in addition to food production. The business plan and accompanying marketing plan, financial model, and site plan are extremely thorough and clearly define the project and business opportunity, demonstrate the project’s economic viability, and provide a timetable for investors, stakeholders, owners, operators, and financial partners to launch and operate the Keene Energy and Agriculture Project (KEAP). The project has been thoroughly researched and after a careful review, I agree with the assessment in the business summary that the project proposes to use “established technologies and best-of-breed equipment to up-cycle waste outputs from one process to be the ideal input of the next process creates an integrated business model that is superior socially, economically, and environmentally.”
The primary business will be a one-acre greenhouse producing hydroponic lettuce and herbs. An attached 11,340 square foot building will house a recirculating aquaculture and state-of-the-art food processing, packaging, and distribution facilities, offices, and a laboratory. The facility will be powered and heated year-round by a combined heat and power plant running on landfill gas captured from the adjacent city landfill. The combination of proven systems and innovative technologies should set apart the KEAP and brand the project and its products as sustainable and local. The plan lists the following business components which have been research and combined into an integrated system: • Renewable Energy: Long-term ownership and control of heat and power energy assets from a renewable source. • Greenhouse Technologies: State-of-the-industry One-Acre Greenhouse with fully automated and controlled climate; supplemental light and automated shade and heat curtains; heat and water storage cisterns with roof-top water catchment, treatment, and recycling. The ability to provide
abundant heat and supplemental light improves growing conditions which increases yield and quality, and should allow for consistent year-round delivery. Most other greenhouses cannot afford supplemental lighting. Thus, the integration of their own energy production give KEAP this comparative advantage. • Aquaculture: 60,000 gallon state-of-the-industry recirculating aquaculture system raising 66,000 pounds of tilapia for local live market every year. The system includes a complete water treatment plant which captures all waste and nutrients for up-cycling to the hydroponic nutrient delivery system. This is the environmentally responsible approach and provides a local supply of high quality food. This is again an area of strength with the negative publicity of tilapia grown under less than ideal conditions from China and distant markets. • Nutrient Cycling and Hydroponics: Proprietary organic nutrient recycling and management technology provides good water quality for fish culture, and an organic source of nutrients for hydroponic vegetables. It will reduce the cost of waste management for aquaculture and a supply of organic nutrients for the hydroponic vegetables. The 34,000 square feet of hydroponic production is projected to produce 496,000 pounds of lettuce and herbs per year. • Processing Facilities: Fully contained growing-processing-packaging-distribution facilities allows for food safety control and certification. • Algae R&D: Algae research and development for feed (fish) and biofuels. This research through partnerships with Dartmouth College and Keene State College is one of the most innovative components of the project. The plan is to up-cycle waste nutrients from the power plant flue gasses and the aquaculture effluent of models of KEAP to grow algae for biofuels. Concurrent research on algae strains adapted to this integrated system is providing a fish feed alternative.
Analysis and opinion on crop yields, crop prices and premium local market assumptions, operational cost assumptions, market scale After doing thorough research on current market prices and expected yields, I find the prices and yields assumed in the proposal to be somewhat conservative and are thus achievable. The financial analysis is very detailed and very realistic. Obviously this proposal has been thoroughly researched and presents a proposal for integrated systems that have a high degree of possibility of success. The scale is appropriate; it is large enough to take advantage of technology and utilize the personnel (General Manager and Grower/Systems Supervisor) and generate enough income to cover these and other overhead costs, but small enough to get started and adjust to any problems that might arise in the startup phase. The size is large enough to be a viable business, but has the advantage of still being small enough to be considered a small business, and as such, can adjust to market conditions and other costs much more quickly that a larger business can. The financial model lists as funding sources two grants, approximately $147K in equity, two low interest loans, and one commercial loan. The $500,000 funding from the EPA’s Climate Showcase Communities Grant Program has been secured, and the other funding is pending. The financial plan includes a stress test or sensitivity analysis to anticipate the economic results should the assumptions in the model not be realized. The sensitivity analysis shows that even if the additional grants and lower interest financing is not secured and financing must be obtained at a higher commercial rate, the company still shows a profit. The business plan shows other sensitivity analyses assuming lower yields and prices in what the plan calls “worst-case” scenarios. When the prices are lowered to reflect no organic price premium, and
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yields are reduced to 75% to 88% of the assumed price, the company still shows a profit. (The yields and prices were conservative to begin with.) When both lower yields, and lower prices are combined, the company still shows a profit. The only scenario that does not show a profit is when yields and prices are low, and low interest financing and grants are not secured. Even in this case, except for the first year, the losses are under $75K per year. It is highly unlikely that all three of these events would occur at once, and other options could be pursued if the proposed financing is not secured. The sensitivity analysis shows the thoroughness of the business plan, and his high probability of success. Market Plan assumptions, overall reasonableness The marketing plan is well thought out and reasonable. The analysis includes market trends and potential competitors. The greenhouse and aquaculture production facility are small enough to sell all of the products to the local market. The plan has identified a market niche that capitalizes on the consumer trends of purchasing locally produced and organic food. The plan shows that the local market as well as produce and food trends have been thoroughly researched. They clearly identify potential markets where the quantity can be sold and price can be reached. They face very little competition for “locally produced” food. Focusing on supplying the local market with organic food should give them a comparative advantage from distant organic producers. They have clearly identified their comparative advantage as both organic and locally produced. The lettuce/salad mix gives consumers a “lightly processed” product making it ready to eat but still fresh. The focus on high quality, safe, fresh, and locally produced produce and fish should secure their market share and price premium. Overall integrity of the model An overarching opinion of the quality of the business plan (and its ability to accurately and clearly articulate the business, and prospects to attract quality key operational leadership, staff, and stakeholders) I find the plan to be very thorough and detailed while at the same time being very readable for potential partners, funders, leadership, staff and stakeholders. The Business Plan states the advantages very well, “By linking energy and food production, the Keene Energy Agriculture Project (KEAP) follows principals that incorporate a sustainable approach to the management of wastes and resources.” The business model provides multiple revenue streams from the sale of produce, fish, and energy. In addition to being environmentally sustainable, the combination of produce and fish production using nutrient and water recycling results in cost savings. Cost reductions are also achieved by using landfill gas for energy and heat for year-round production of tilapia and organic produce in the Northeast. The project capitalizes on current food trends of the increasing tendency of consumers to seek locally grown food, a growing interest in farmers markets and other direct from producer purchases, a preference for fresh products, and growing interest in healthy and sustainably produced products. As the Business Plan states, “This unique integrated approach to developing energy resources goes beyond conventional landfill gas-to-energy development and brings greater value to the environment and community by developing a "closed loop" systems that strive to transform all waste streams and pollutants into energy, heat, food and feedstock.” I find the fundamental philosophy of KEAP that investment in the skill, quality, and satisfaction of its employees will create a stronger, more resilient, and more successful and profitable business to be absolutely true and laudable. In analyzing greenhouse businesses over the past 30+ years, I find the ones who adhere to this philosophy to be successful. Having a clear business mission and vision that all of the employees believe in will create a positive work environment which will foster success and profitability.
The plan proposes to provide opportunities for individuals to have good jobs within the company. This positive work environment will reduce costs because it will lead to productive employees and should result in reduced costs because of low employee turnover eliminating costs of hiring and training new employees. The plan is very thorough and based on proven technologies and cutting edge systems. The projections are reasonable, and possible pitfalls have been considered. I think the project has a high probably of success, and I have no reservations about recommending that it proceed.
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Review and Comments on the Keene Energy & Agriculture Project The report and associated attachments is well done and covers the essential factors when considering a new greenhouse production venture. Considerable research and analysis went into developing the plan. My comments are based on my 40 years providing education and technical assistance to commercial greenhouse and nursery operations throughout the U.S. Greenhouse technology continues to change at a rapid pace. We normally consider that a greenhouse built today will be obsolete in 10 years as new technology takes its place. New materials, systems and growing methods will replace what is common today. Flexibility should be kept in mind as the project is developed. Most of the current technology has been included in this proposal. Labor and energy are the two largest cost items in producing crops. Both of these have been address in the proposed project. Site The site is not an ideal site. There is considerable cut and fill needed to get a level area. This adds cost to the project. All weather access to the site is also difficult. The 130’ climb presents problems for providing supplies and shipping the finished produce. Solar access is good to the east. This helps to get the plants started in the morning. The trees should be cut back to the west and south so that the greenhouse is not shaded with the low sun angle during the winter. Although afternoon light is not as important, the effect of Highland Hill (1520’) should be reviewed. It may reduce total daily light by an hour or two. This will result in the need for more supplemental light. Layout of the greenhouse could be improved (see attached sketch). Normally we design gutterconnected greenhouses with a true north-south gutter orientation. This is to prevent the gutter from creating a fixed shadow. A few degrees either side of true north has little effect on production. I can’t tell from the concept plan if the greenhouse has been oriented to true north or magnetic north. Presently declination is about 15° in Keene. Also the concept plan limits the greenhouse size to about 1 acre. By rotating the greenhouse so that it is parallel to the contours, an area for expansion could be incorporated. This might be an additional acre. This could be important as a larger facility is more efficient from a labor and production standpoint. This arrangement would also reduce the amount of cut and fill. The initial acre and headhouse could be located further north on the parcel with initial parking in the proposed expansion area.
Drainage also needs to be considered. A 1.25 acre impervious roof will collect about 34,000 gallons of water in a 1” rainfall. As the greenhouse is on a steep hillside, this will run downhill toward the transfer station facilities. A detention pond probably should be designed into the plan. Greenhouse design Details on the proposed greenhouse are sketchy at this point. The Brattleboro greenhouse facility design is a good starting point. It is well built. The use of a gutter-connected greenhouse is important from an energy and labor standpoint. As there are many designs and options for the structure and environment control systems, this needs to be addressed when the project moves along further. This is also true of the plant growing systems. Different hydroponic systems are available for different crops and selection needs to be based on what will be grown. It appears that adequate funding has been included for a good greenhouse with computer controlled environment. This type of greenhouse is currently being built for $600,000 - $800,000/acre. A review of the design and included equipment should be done before the contract is signed. You may want to make contact with the Year-Round Agriculture Cluster Initiative in Maine. This project is looking at building a new style of greenhouse with fiberglass reinforced composite frame designed by the University of Maine and thin-film photovoltaic technology developed in China. They are proposing greenhouses for the production of vegetables and have done an extensive study funded by the Maine Sustainable Agriculture Society. Contact is Tony Kieffer, Managing Partner, Main Asia, 4 Milk Street, Suite 100, Portland ME 04101 – Phone: 207-358-7236. Heat Heat requirements are not spelled out in the report. Typically a well-designed gutter-connected greenhouse with multiple energy/shade screens will require about 50,000 Btu/sq ft for the heating season. Electricity use will be from 1 – 1.5 kwhr/sq ft – yr depending on the amount of supplemental lighting used. There is little information in the report on the amount or quality of the methane that is available from the landfill. I assume that this study has been done but it should be referenced in the report. What is the amount of methane that can be recovered and over what life. When this runs out what will be the heat source. Can be incineration of garbage or wood be used? A review of heat storage should also be considered. This is becoming a common and important part of larger greenhouse operations. With CHP systems it can help to balance the demand for electricity with the heat from the water. Insulated storage tanks are inexpensive and serve to store large quantities of heat for use at dusk when the greenhouse needs to replace large amounts of cold water in supply piping. It can also reduce the size of the heating system installed by having a supply of warm water over night. CHP can also supply carbon dioxide that is important to increased growth in lettuce and other crops.
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Crops Based on my limited experience in production but having been involved with lettuce research at UConn and contact with several hydroponic lettuce growers, leaf lettuce is one of the main vegetable crops grown due to its large consumption. Locally grown is becoming more in demand during the past few years. Increase in the demand for packaged salad mixes has allowed growers to expand into other types of greens. These are year-round crops and require less light and heat then crops such as tomatoes and cucumbers. Disease and insect problems are generally less also. The figures on production are comparable to the results of a similar facility set up and operated by Cornell University and now operated by Challenge Industries, Inc at 10 Pickney Road, Ithaca NY – www.fingerlakesfresh.com. Their production of leaf lettuce is about 0.04 lbs/sq ft – day. The greenhouse is set up with floating Styrofoam trays, computer environment control and supplemental lighting to a level of 17 mol/sq m-day. The lettuce is spaced twice to get greater plant density. They operate on a 36 day growth cycle to produce 5.3 oz heads. The 10 oz head proposed may be too large from a consumer demand and from growing space utilization in the greenhouse. It may require more labor for spacing and a different production system. Fresh basil is popular as a crop. Most of it is produced in containers that the consumer takes home and harvests for a period of time. There is considerable expansion in basil production at the present time. Full Bloom Greenhouses in Whately MA recently expanded their year-round production with a new gutter-connected greenhouse. This one uses LED supplemental lighting as compared to their other production areas that have high-pressure sodium. Labor needs The projected labor needs may be a little high as compared with other hydroponic production operations. The production aspect is relatively low as compared to the packing and shipping labor needed. An efficient layout is needed in the packing shipping area to reduce this labor. The use of a contract shipper will help to reduce transportation costs. Prepared by: John W. Bartok, Jr. Agricultural Engineer 135 Pumpkin Hill Road Ashford CT 06278 860/429-4842 jbartok@rcn.com October 28, 2013
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June 18, 2009 File No. 3035.00 Mr. Duncan Watson City of Keene, Public Works Department 350 Marlboro Street Keene, New Hampshire 03431 Re:
Initial GCCS Assessment Keene Municipal Landfill Keene, New Hampshire
Dear Duncan: Sanborn, Head & Associates, Inc. (SHA) is pleased to provide this initial assessment of the landfill gas (LFG) collection and control system (GCCS) at the Keene Municipal Landfill in Keene, New Hampshire. As outlined in our May 18, 2009 scope of services, we:
• Performed wellfield monitoring on May 21, 2009; • Developed Landfill Gas Management SuiteTM (LFGMS) for specific application at the Keene Municipal Landfill;
• Assessed the performance of the GCCS based on: o Review of the data collected during the above-referenced wellfield monitoring event using LFGMS as a data evaluation tool;
o Information obtained during a May 21, 2009 site meeting and a June 8, 2009
telephone call with Mr. Rob Cross, the operator of the site’s landfill gas-to-energy (LFGTE) facility;
o Review of the Keene Municipal Landfill, Final Closure Design, December 1998, Revised April 1999 Record Drawings prepared by Weston & Sampson Engineers, Inc.; and
o Review of the February 14, 2001 Construction Certification Report, Keene Sanitary Landfill Closure Project prepared by Weston & Sampson Engineers, Inc.
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BACKGROUND The Keene Municipal Landfill is a closed, 12-acre municipal solid waste landfill. Closure activities including installation of a geomembrane cap were completed in 2000. An active GCCS was installed prior to and during the landfill closure construction project. LFG is used beneficially at the site by fueling a Caterpillar Model 3412 internal combustion engine/generator set with a rated capacity of 250 kilowatts (kW). The engine/generator set is not connected to the utility power grid; rather, the engine/generator set provides electricity directly to the City of Keene’s recycling center located contiguous to the closed landfill. Due to the configuration of the system, which includes a pressure-regulating expansion tank, varying levels of vacuum are applied to the wellfield depending on the demand for electricity at the recycling center. The vacuum blower motor operates at a predetermined speed (e.g., the variable frequency drive was set at 45 Hertz during our site visit on May 21, 2009) and gas accumulates in the expansion tank, building up pressure to a lesser or greater degree depending on demand for the generator set to provide electricity (and draw gas from the expansion tank). There have recently been periods of insufficient delivery of LFG to fuel the engine/generator set at a rate needed to generate sufficient electricity for the recycling center. The City of Keene requested SHA’s assistance with assessing the performance of the site’s GCCS, with the objective of providing recommendations to improve the collection efficiency of the GCCS. WELLFIELD MONITORING On May 21, 2009, an SHA engineer visited the site to monitor gas parameters at each of the extraction locations in the active gas collection system, and at the outlet of the system’s vacuum blower. We used a Landtec GEM-2000TM to measure and record the following parameters at the locations discussed above:
• • • • • • •
Methane concentration; Carbon dioxide concentration; Oxygen concentration; Balance gas concentration; Flow rate (where possible using a GEM-2000TM) 1 ; Wellhead/header vacuum; and Gas temperature.
1
Sampling ports that allow for flow measurements were not present on all of the gas extraction points at the site. The following is a summary of the status of the flow measurement sampling ports: • Working Condition (9 locations): GW1, GW3, GW4, GW8, GW9, GW11, GW14, GW16, GW17. • Broken/Missing/Non-Functioning (8 locations): GW2, GW5, GW6, GW7, GW10, GW12, GW13, GW15. • No Flow Monitoring Device (4 locations): GWA, GWC, GWE, GV12. • Not Accessible/Disconnected (2 locations): GWB, GWD. City of Keene, NH / Initial GCCS Assessment 3035.00 \ 20090618 keene initial GCCS assessment.docx June 18, 2009 Page 2
For this project, we created a web-based access point, Landfill Gas Management SuiteTM (LFGMS), which enabled us to use the interactive, web-based data management and mapping tools to assess wellfield monitoring data to evaluate the site’s GCCS. We entered data collected by SHA on May 21, 2009 into LFGMS. The following sections provide a summary of our analysis using LFGMS. As indicated on Figure 1: Wellfield Monitoring Data, we performed monitoring during a period of increased electricity demand when the recycling center was operating (from 1008 hours to 1340 hours) and when electricity demand was reduced shortly before and after the recycling center closed for the day (from 1426 hours to 1602 hours). The following general statements may be made regarding the monitoring data:
• Methane concentrations (typically more than 60 percent by volume) were higher than
commonly observed at similar sites with an active GCCS. Figure 2: Mapping-High Methane Concentrations provides an illustration of the distribution of gas extraction points with methane concentrations greater than 60 percent by volume.
• Vacuum was not present at any of the gas monitoring points; rather, positive pressure was
measured at each location. Figure 3: Mapping-Positive Pressure provides an illustration of the distribution of gas extraction points with positive static pressures. Our experience is that it is uncommon for positive pressures to be measured at extraction locations in similar sites with an active GCCS.
• Oxygen concentrations monitored at gas extraction locations were generally less than 1 percent by volume, which is normal for similar site with an active GCCS. At GWA, however, the oxygen concentration was slightly elevated (3 percent by volume) – potentially indicating a compromised extraction point allowing for air intrusion into the GCCS.
• Flow rates were monitored at extraction points with functioning flow monitoring devices.
At the nine locations where we could monitor flow, the monitored values indicate relatively low flow rates relative to values we have monitored at other similar sites with an active GCCS. It should be noted that the GEM-2000TM must be configured to record flows from specific monitoring devices (e.g., orifice plate, pitot tube, etc.). We did not have records of the specific model flow monitoring device at each of the gas extraction locations. As such, the quantitative value recorded for flows may not be accurate, but from a qualitative standpoint, we were able to assess the relative distribution of gas extraction from the wellfield (see Figure 4: Mapping-Low Flow).
• Energy extraction rates provide an indication of the amount of energy being extracted from the wellfield. Energy extraction rates are calculated as the mathematical product of the flow rate multiplied by the methane concentration at a given gas extraction point. We commonly use energy extraction rates as a measure of the effectiveness of the gas extraction system. Whereas methane concentrations and/or flow rates may provide some measure of useful
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assessment data, there may be cases when high methane concentrations are present at a gas extraction point but there is very little flow, or vice versa; we believe energy extraction is a more useful parameter in assessing wellfield performance. Figure 5: Mapping-Low Energy Extraction provides an illustration of the distribution of energy extraction at the locations where we could monitor flow. (Note: Because energy extraction is dependent on the flow rate data, and the quantitative values for flow may not be accurate as noted above, the energy extraction data was only used as a qualitative measure of the system effectiveness.)
• Carbon dioxide and balance gas concentrations, and temperature measurements are
presented in Figure 1. Each of these parameters is within the expected ranges for similar sites with an active GCCS; although, the balance gas concentrations are on the low end of the expected range. There is generally no reason to be concerned with low balance gas concentrations, because balance gases (e.g., nitrogen) commonly result from the presence of elevated oxygen levels in the landfill which converts to nitrogen during biological decomposition. Rather, we might have been concerned about the potential for a landfill fire if elevated nitrogen (and/or oxygen) levels were present in gas extracted from a landfill.
GCCS EVALUATION Using LFGMS, in conjunction with a review of the GCCS Record Drawings and our understanding of the mode of operation of the LFGTE facility, we evaluated the system to assess potential gas collection efficiency performance enhancements. Based on a June 8, 2009 telephone call with Mr. Rob Cross, the operator of the site’s LFGTE facility, and our experience on other LFGTE projects, we understand the following to be true:
• The LFGTE facility has been operating for approximately 10 years and it has only been
during the last couple years (primarily during the winter months) that there have been periodic non-routine shutdowns of the engine/generator set.
• Mr. Cross said that the shutdown events have occurred not only during periods when there is
significant electricity demand at the recycling center, but also during nights when there is limited electrical load.
• Mr. Cross indicated that he has been on-site during some of the shutdowns and when he
sampled the gas at the LFGTE facility shortly after the shutdowns, there typically had been very low concentrations of methane. Mr. Cross did not indicate whether the oxygen concentration increased with decreasing methane. There are no flow meters in the GCCS headers, so it was not possible to determine whether there were reduced flows when the shutdowns occurred. Based on this information, it may be inferred that certain conditions were resulting in reduced flow and/or air intrusion (i.e., increased oxygen and reduced heat content in the delivered gas) that ultimately caused the engine/generator set to stop operating.
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• The engine/generator set has a rated capacity of 250 kW, and Mr. Cross told SHA that the recycling center’s demand is typically 100 kW and demand has not exceeded 150kW. Assuming an engine/generator set efficiency of 12,000 British thermal units per kW-hour (Btu/kWh), which is within the typical range for a Caterpillar model 3412, the approximate LFG flow requirement for the unit would be:
o 40 cubic feet per minute (cfm) for a 100kW load; o 60 cfm for a 150kW load; and o 100 cfm for a 250 kW load.
• Mr. Cross stated that all of the gas extraction points are configured such that the flow control
valves are fully open (i.e., no gas flow regulation occurs through adjusting the flow control valve positions), and wellfield monitoring and balancing has not been performed as a standard practice at the site.
As noted above, each gas extraction point that we monitored had positive pressure. This means that during the period of our monitoring there was more gas being generated by the landfill than was being extracted by the GCCS. Although positive pressures were identified at each monitoring point, a closer assessment indicates that there is a difference in the degree to which positive pressure was present, depending on the electricity demand at the recycling center. Figure 6: Mapping-Vacuum, Initial Round (Recycling Center Operating) illustrates that when the recycling center was operating and electricity demand was (presumably) 2 moderate to high, the majority of the wellfield exhibited slightly positive pressures (i.e., less than 0.5 inch of water column [in-H2O]) and there were only a few extraction locations with greater positive pressure. Contrasting the scenario when the recycling center was operational, Figure 7: Mapping-Vacuum, Second Round (Recycling Center Closing/Closed illustrates the results of monitoring the gas extraction locations during the period when the recycling center was closing and after it had closed for the day. This second round of monitoring indicates that only extraction points in the immediate vicinity of the vacuum blower had positive pressures of less than 0.5 in-H2O. Each of the other monitored locations had greater positive pressure. By comparing the distribution of positive pressures at gas extraction points before and after the recycling center closed, which presumably coincides with period of greater and lesser energy demand, respectively, it is evident that the influence of the GCCS is directly proportional to the electricity demand at the recycling center. It is possible that during periods of higher electricity demand, the disparity in pressure/vacuum distribution throughout the landfill could be even more pronounced and sections of the landfill could be under vacuum while other sections would have positive pressure.
2
We do not have records of the electricity demand on May 21, 2009, the day of the monitoring event. For purposes of this evaluation, we assumed that the electricity demand at the recycling center was within the typical range of the normal load during periods when the facility is operating. City of Keene, NH / Initial GCCS Assessment 3035.00 \ 20090618 keene initial GCCS assessment.docx June 18, 2009 Page 5
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Because positive pressures typically indicate that gas generation rates exceed gas extraction rates, and negative pressures (or vacuums) typically indicate gas extraction rates exceed gas generation rates, when the electricity demand is high it is possible that certain gas extraction points would be under vacuum and there would be greater potential for ambient air to be drawn into the system. Figure 8: Mapping-Vacuum, GCCS Areas of Influence illustrates that the GCCS has the greatest influence upon extraction points nearer to the vacuum blower. We would expect the available vacuum distribution to be as depicted in Figure 8. Because each of the flow control valves are in the “full open” position and wellfield balancing does not typically occur at the site, we would also expect the applied vacuum distribution to be as depicted in Figure 8 (i.e., the available and applied vacuums are equivalent).3 RECOMMENDATIONS Based on our initial evaluation of the GCCS, we developed recommendations for further actions to limit the potential for GCCS shutdowns due to insufficient gas quantity and/or quality. Our recommendations include: (1) Relatively minor retrofits to the existing GCCS header pipes, (2) Evaluation of the potential for air intrusion in the GCCS in the vicinity of the vacuum blower, and (3) Implementation of routine wellfield monitoring to enable adjustments to flow control valves based on the distribution of vacuum, energy extraction rates, and oxygen. GCCS Header Pipe Retrofit Figure 9: Gas Collection System, Proposed Modification is a “marked-up” copy of a Record Drawing prepared by Weston & Sampson Engineers, Inc. which presents our understanding of the existing GCCS header pipe layout and locations of flow control valves in the header pipes. We understand that there was an “Original Header” installed before completion of the capping/closure project. As part of the capping/closure project, a new header system was installed; on Figure 9, we identified sections of the new header system as: (1) South Header, (2) Central Header, and (3) North Header. GWA, GWB, GWC, GWD, and GWE are connected by lateral pipes to the Original Header, and the remainder of the gas extraction points is connected to the new header system. In our experience, it is best to have “loop” headers so that extracted gas may be conveyed in the header pipe in either a clockwise or counterclockwise direction. Loop headers are particularly useful when there is blockage, such as leachate/condensate accumulation in low points in the header. In order to enable a more rigorous evaluation of the GCCS, we recommend adding header pipes (e.g., 6-inch diameter pipe) to connect the South Header and North Header to form a loop (see Figure 9). 3
The available vacuum is the amount of vacuum present in the header/lateral pipe at an extraction point; it is a measure of the amount of vacuum that is available to be imparted to an extraction point. The applied vacuum is the amount of vacuum that is actually applied to an extraction point. The flow control valve at an extraction location regulates the amount of available vacuum that is applied to an extraction point. City of Keene, NH / Initial GCCS Assessment 3035.00 \ 20090618 keene initial GCCS assessment.docx June 18, 2009 Page 6
A further description of the benefits of having a loop header is discussed in the “Wellfield Monitoring” section below. Potential Air Intrusion Evaluation Our evaluation illustrated that the GCCS has the greatest influence in the vicinity of the vacuum blower. Under vacuum conditions which may occur during periods of increased electricity demand at the recycling center, there is the potential for air intrusion to occur. Figure 10: Gas Collection System, Header Connection Detail is a “marked-up” version of a Record Drawing prepared by Weston & Sampson Engineers, Inc. which illustrates our understanding of the header connection detail in the vicinity of the vacuum blower/LFGTE facility. We understand that gas collected in the header pipes of the new system (i.e., South, Central, and North Headers) flows into a condensate knock-out tank and the combined gas is then conveyed through a header pipe towards the LFGTE facility. Downstream of the condensate knock-out tank, there is a header pipe junction connecting the new system infrastructure to the Original System Header. Figure 11: Gas Collection System, Potential Area of Concern highlights a section of a Weston & Sampson Engineers, Inc. Record Drawing and includes information that we have added. On Figure 11, we noted that based on our initial round of monitoring there is higher vacuum applied on GWA (the extraction point on the Original Header that is closest to the vacuum blower) than most other areas of the landfill. The higher vacuum at GWA is of potential concern for three reasons, as discussed below:
• Highest Oxygen Concentration at GWA – As indicated in the wellfield monitoring data presented in Figure 1, an oxygen concentration of 3 percent by volume was measured at GWA. While the measured concentration is not particularly high or unusual for an active GCCS extraction point, the next highest concentration was 0.2 percent oxygen by volume for each of the other extraction points.
It is possible that air intrusion is occurring at GWA, and under vacuum conditions, it would be likely that higher oxygen concentrations would be present at that location – potentially resulting in inadequate heat content in the gas delivered to the LFGTE facility to operate the engine/generator set.
• Potential Air Intrusion at Original Condensate Drainage Pipes – Based on our review of the Record Drawings, we understand that the Original System Header was designed with a condensate drainage system between GWA and the LFGTE facility. Depending on the design and construction of the condensate drainage system, in our experience, we have observed air intrusion on such systems if the drainage pipes are not properly sealed from the ambient environment when sufficient vacuum is applied.
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• No Flow Control Valve on the Original System Header - Our understanding is that there is no
flow control valve on the Original System Header. Because of the concerns noted above regarding potential air intrusion, we believe it will be important to assess the condition of the original condensate drainage pipes and gas extraction system components, primarily wellheads, to limit the potential for air intrusion. Because there is a flow control valve at GWA (and other gas extraction points on the Original System Header), we do not believe it is necessary to install a flow control valve on the Original System Header pipe, but the City of Keene may consider this option in the future.
Wellfield Monitoring Routine, periodic wellfield monitoring is common for landfills with active GCCS. For subject facilities, the New Source Performance Standard (NSPS) for Municipal Solid Waste Landfills requires wellfield monitoring to be performed at least once per month. While the Keene Municipal Landfill is not subject to the NSPS, it is generally good practice to perform wellfield monitoring on a regular basis. We recommend that wellfield monitoring be performed at the Keene Municipal Landfill on a monthly basis for at least one year until there is a historical record from which further assessment of the GCCS may be based; after which time, perhaps quarterly monitoring may be sufficient. Because Mr. Rob Cross indicated that LFGTE facility shutdowns have occurred more frequently in the winter during the past two years, it is possible that condensate generation (which occurs more readily in the winter months) may be resulting in partially blocked header pipes either from liquid blockage or sections of headers having frozen condensate, thereby limiting gas flow. Partially or completely blocked header pipes also increase the potential for additional vacuum in free-flowing header pipes. For instance, with the current GCCS configuration, if the South Header were to become blocked, additional vacuum would, for example, be induced in the Original System Header, thereby increasing the potential for air intrusion at GWA or the original condensate drainage pipes. The combination of installing additional header pipe to form a loop header by connecting the South and North Headers, and regular wellfield monitoring should limit the potential for LFGTE facility shutdowns.
City of Keene, NH / Initial GCCS Assessment 3035.00 \ 20090618 keene initial GCCS assessment.docx June 18, 2009 Page 8
CONCLUSIONS Based on our initial evaluation of the GCCS, we recommend the following next steps: 1. Add header pipes (e.g., 6-inch diameter pipe) to connect the South Header and North Header to form a loop (see Figure 9). 2. Assess the condition of the original condensate drainage pipes to limit the potential for air intrusion. 3. Assess the condition of gas extraction system components, primarily wellheads, to limit the potential for air intrusion. 4. Repair, replace, or install sampling ports on the following extraction points:
o Broken/Missing/Non-Functioning (8 locations): GW2, GW5, GW6, GW7, GW10, GW12, GW13, GW15;
o No Flow Monitoring Device (4 locations): GWA, GWC, GWE; and o Not Accessible/Disconnected (2 locations): GWB, GWD. 5. Perform wellfield monitoring on a monthly basis for at least one year until there is a historical record from which further assessment of the GCCS may be based; after which time, perhaps quarterly monitoring may be sufficient. Thank you for the opportunity to provide GCCS evaluation services to the City of Keene. We look forward to continuing to assist you on this project. Please call me if you have any questions. Sincerely, Sanborn, Head & Associates, Inc.
David E. Adams, P.E. Project Director DEA/MEE/RSS:dea Attachments: Figures 1 through 11 H:\RANDATA\3000s\3035.00\Correspondence\2009\20090617 keene initial GCCS assessment.docx
City of Keene, NH / Initial GCCS Assessment 3035.00 \ 20090618 keene initial GCCS assessment.docx June 18, 2009 Page 9
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Keene Municipal Landfill Old Summit Road Keene, NH
Device
Date
0000GV12
2009-05-21 10:08
CH4%
CO2%
O2%
Balance %
Curr. Flow (scfm)
Init. Temp. (ยบF)
Curr. Static Pressure (in.-H2O)
62.4
37.4
0
0.19
77
0
0000GW17
2009-05-21 10:19
69
28.1
0
2.89
72
0
00000GWA
2009-05-21 10:29
76.4
20.5
3
0.09
80
0
0000GW11
2009-05-21 10:49
61.7
38.2
0
0.09
77
0
0000GW16
2009-05-21 10:58
64.6
35.3
0
0.1
73
0.2
0000GW10
2009-05-21 11:18
61
38.9
0
0.09
85
0
0000GW14
2009-05-21 11:28
61.4
38.3
0.1
0.19
86
0.2
Energy Extraction (MMBtu/Day)
0000GW15
2009-05-21 11:36
63.3
36.5
0
0.2
84
0.1
00000GWC
2009-05-21 11:45
66.1
33.8
0
0.1
94
0.5
0000GW13
2009-05-21 11:53
61.2
38.7
0
0.09
82
0.5
00000GWE
2009-05-21 11:59
61.2
38.6
0
0.2
91
0.4
0000GW08
2009-05-21 12:04
60.7
39.1
0.1
0.1
88
0.7
0000GW09
2009-05-21 12:12
59.7
40.2
0
0.09
72
0
0000GW12
2009-05-21 12:20
60.7
39
0.1
0.19
88
0.4
0000GW04
2009-05-21 12:24
61.9
37.9
0
0.19
82
1
0000GW02
2009-05-21 13:14
62.9
36.9
0
0.19
94
0.8
0000GW01
2009-05-21 13:17
61.1
38.8
0
0.1
104
0.4
0000GW03
2009-05-21 13:30
60.1
39.8
0
0.1
75
0.3
0000GW06
2009-05-21 13:35
61.6
38.2
0.1
0.1
76
0.4
0000GW07
2009-05-21 13:40
63.4
36.5
0
0.09
100
0.5
0000GW17
2009-05-21 14:26
59.9
39.7
0.2
0.19
17
82
0.4
14.66
0000GW09
2009-05-21 15:13
60.2
39.7
0
0.09
12
78
0.4
10.40
0000GW08
2009-05-21 15:18
59.6
40.3
0
0.1
5
94
1.3
4.29
0000GW03
2009-05-21 15:23
60.4
39.5
0
0.09
24
77
0.6
20.87
0000GW01
2009-05-21 15:29
60.9
39
0
0.09
4
106
0.5
3.51
0000GW04
2009-05-21 15:41
61.2
38.7
0
0.09
5
82
1.4
4.41
0000GW14
2009-05-21 15:52
60.5
39.4
0
0.09
12
96
0.8
10.45
0000GW16
2009-05-21 15:57
64.5
35.4
0
0.09
9
79
0.7
8.36
0000GW11
2009-05-21 16:02
61.5
38.4
0
0.09
13
84
0.5
11.51
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Keene Municipal Landfill Old Summit Road Keene, NH
Keene Municipal Landfill: CH4%
Mapping: CH4% on Keene Municipal Landfill Period: All Time Where CH4% is greater than60
True False No Data
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Keene Municipal Landfill Old Summit Road Keene, NH
Keene Municipal Landfill: Curr. Static Pressure (in.-H2O)
True False No Data
Mapping: Curr. Static Pressure (in.-H2O) on Keene Municipal Landfill Period: All Time Where Curr. Static Pressure (in.-H2O) is greater than or equal to0
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Keene Municipal Landfill Old Summit Road Keene, NH
Keene Municipal Landfill: Curr. Flow (scfm)
< 10 10 to 20 20 to 30 30 to 40 40 to 50 > 50 No Data
Mapping: Curr. Flow (scfm) on Keene Municipal Landfill Period: All Time Page 1/1
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Keene Municipal Landfill Old Summit Road Keene, NH
Keene Municipal Landfill: Energy Extraction (MMBtu/Day)
< 10 10 to 20 20 to 30 30 to 40 40 to 50 > 50 No Data
Mapping: Energy Extraction (MMBtu/Day) on Keene Municipal Landfill Period: All Time Page 1/1
Keene Municipal Landfill Old Summit Road Keene, NH
Keene Municipal Landfill: Curr. Static Pressure (in.-H2O)
True False No Data
Mapping: Curr. Static Pressure (in.-H2O) on Keene Municipal Landfill Period: to May 21, 2009 Where Curr. Static Pressure (in.-H2O) is less than0.5
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Keene Municipal Landfill Old Summit Road Keene, NH
Keene Municipal Landfill: Curr. Static Pressure (in.-H2O)
True False No Data
Mapping: Curr. Static Pressure (in.-H2O) on Keene Municipal Landfill Period: from May 21, 2009 Where Curr. Static Pressure (in.-H2O) is less than0.5
Page 1/1
Keene Municipal Landfill Old Summit Road Keene, NH
Keene Municipal Landfill: Curr. Static Pressure (in.-H2O)
True False No Data
Mapping: Curr. Static Pressure (in.-H2O) on Keene Municipal Landfill Period: to May 21, 2009 Where Curr. Static Pressure (in.-H2O) is less than0.1
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South Header Flow Control Valve
Main H Flow C
Central Header Flow Control Valve
North He Flow Con
Original System Header (No Flow Control Valve)
Header Control Valve
eader ntrol Valve
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Dartmouth College
Anne R. Kapuscinski Sherman Fairchild Distinguished Professor of Sustainability Science Chair of Environmental Studies Program
Environmental Studies Program 6182 Steele Hall Hanover, NH 03755-3755, U.S.A. Tel: +1-603-646-2668 Main office: +1-603-646-2838 Fax: +1-603-646-1682 Anne.Kapuscinski@dartmouth.edu
April 8, 2014 Don McCormick Dear Don: I am writing to enthusiastically support and applaud the Keene Energy Agriculture Project. As a valued colleague over the past five years, I know you will bring the same passionate, innovative thinking to KEAP as you have to our other collaborations. These include your role in the aquaculture systems and related systems design of the Dartmouth Fish Barn and your input, informed by your business and practitioner experience, into the research program of Dartmouth’s Integrated Food Energy Systems Team. Dartmouth Team IFES is a long-running collaborative team of faculty and students from the Environmental Studies Program and the Thayer School of Engineering. Team IFES also has growing interactions with renewable energy and sustainable food systems practitioners from the Northeast US to the United Nations Food and Agriculture Organization (FAO). The FAO is particularly interested in the establishment of US projects exactly like the Keene Energy Agriculture Project. Thus, I can envision this project becoming an international showcase example. You have also contributed important ideas and contacts for my lab’s research on integrating microalgae production, renewable energy and aquaponics; and on testing micro-algae as a pro-sustainability replacement for fishmeal and fish oil in aquaculture diets. On behalf of Dartmouth Team IFES, we look forward to ongoing interactions with your organization. Our undergraduate and graduate students, post-doctoral fellows, faculty and staff will be excited to participate in a variety of research and education activities at the KEAP, related to harvesting methane, renewable energy and carbon credits, agriculture, aquaculture and environmental learning. KEAP is a wonderful example of the kind of green economy business needed to meet the big challenges of the 21st century. It will be a major asset to the state of New Hampshire. My colleagues and I at Dartmouth look forward to an active and ongoing collaboration with KEAP and IFES. Congratulations Don, and all best wishes. Sincerely,
Anne R. Kapuscinski Proposal Keene Energy and Agriculture Project 04.10.2014
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Dartmouth College
HANOVER • NEW HAMPSHIRE • 03755-3712 Dining Services • 6172 Class of 1953 Commons • Tel:(603)646-2271 • Fax:(603)646-1735 http://www.dartmouth.edu/dining/
April 7, 2014 Mr. Don McCormick Keene Energy and Agricultural Project P.O. Box 771 Walpole, NH 03608 Dear Don, It was good to meet you the other day and have the opportunity to show you our Dining Service facilities at Dartmouth, as well as hear about your dynamic plans for KEAP and the quality local foods KEAP will produce year-round We have been eager to access sources of fresh quality products near Hanover, but have found it difficult to find local producers with a scale sufficient to meet our needs at Dartmouth Dining Services. As we discussed, the same things that matter to you matter to us: food safety, freshness, appropriate volume, clean packaging, and a ready and reliable supply year-round fresh products. It was exciting to realize that could actually meet many of our needs and fit into our existing purchasing logistics as well. Naturally, for a college like Dartmouth, the educational research possibilities combined with students’ growing interest in local food production and future sustainability, makes the DDS relationship with KEAP all the more viable. We look forward to ongoing conversations and all future connections with KEAP. I sense that your facility’s successful sustainability will have long term benefits for other university and college dining services in the state of New Hampshire and beyond. Good luck! Don Reed Associate Director Dartmouth Dining Services 5 Mass Row Dartmouth College Hanover, NH 03755
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Depts. of Biological Sciences and Molecular, Cellular and Biomedical Sciences Durham, NH 03824-2126 (603) 862-3200 Fax: (603) 862-2717 extension.unh.edu
County Offices Belknap County 527- 5475 Carroll County 447-3834 Cheshire County 352-4550 Coös County 788-4961 Grafton County 787-6944 Hillsborough County 641-6060 Merrimack County 796-2151 Rockingham County 679-5616 Sullivan County 863-9200 Education Center 629-9494 Office 1-877-398-4769 Toll Free UNH Cooperative Extension State Office 862-1520
The University of New Hampshire is an equal opportunity educator and employer. University of New Hampshire, U.S. Department of Agriculture and N.H. counties cooperating.
April 8, 2014 Don McCormick Integrated Food Energy Consulting Walpole, NH Dear Don, We all enjoyed meeting you and learning more about the Keene Energy and Agriculture Project (KEAP), which promises not only to provide the state of New Hampshire a sustainable production venue, but will be a cooperative educational partner with the UNH Extension faculty. KEAP’s renewable energy, aquaculture, and year-‐round vegetable production -‐-‐ all integrated as a closed-‐loop system into one sustainable farm – will encourage dialogues and partnering possibilities between business, academic institution, and community. Indeed, the UNH Extension and KEAP have the potential for collaborative “green” research with a network of New Hampshire farmers as a venue for the sharing of sustainable future projects. As we reach out to our colleagues in related fields of agriculture and business at UNH to explore the many technologies KEAP will offer -‐-‐ from aquaculture, to energy; and sustainability to development of local food markets -‐-‐UNH Extension can also bring resources to help support the growth and technical challenges of farming, greenhouse operations, aquaculture, and vegetable production and marketing. Thank you for meeting with us about this very promising endeavor. We are pleased to offer our support. Yours truly, Catherine Violette – Extension Professor, Food Safety Brian Krug – Extension Assistant Professor, Greenhouse Horticulture Becky Sideman – Extension Professor, Sustainable Horticulture
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