1. Where have you done similar installations, both in steaming capacity and hours of operation? What is Vision's experience and track record in the biomass steam generation industry? Our viability depends on Vision's ability to perform. Can you provide some references?
In early 2006, Vision determined that the costs of NG and fuel oil were not only going to remain at historically high levels, but would continue to trend much higher in the coming years because of shortfalls of natural gas supply, increased domestic use for power generation, and increasing worldwide demand from China and India.
To stabilize the costs of steam and power, it is Vision's conclusion that a fuel switch to domestic, cost-stable wood fuel is essential, and other paper mills and ethanol plants have concluded likewise and contracted Vision for biomass steam boilers and turbines since September 2006. Each of these is in development.
Vision understands that steam is mission-critical to the operation of ethanol plants and paper mills. Without steam, you're out of business. Biomass steam generation has been in use for over forty (40) years and is a very proven technology. Vision's biomass is in addition to and redundant to the steam generating plant currently in place at your facility. You will have two (2) steam plants. The current steam plant will act as a backup only. Vision will be responsible for the operation of the combined plants.
Your current boilers will only be operated five to seven days a year in total.
2. Is plant scalable if we choose to increase production by 10% - 100% over time? YES.
3. Are there sites available for a plant tour? YES.
4. What would be required from a plant layout standpoint regarding physical space needs (foot print), traffic pattern, access, and overall logistics within the host plant? For 100,000 LBS/H, approximately 220' x 240', for 200,000 LBS/H, 440' x 240' as close to the existing boiler as practical. There would be one to two trucks per hour, 7:00 a.m. to 7:00 p.m. unloaded via truck dumpers. Average time each truck is on site is approximately fifteen minutes.
5. Will Vision be providing design and installation services or will they subcontract this work? Vision will provide all design, engineering, installation, commissioning, operation and maintenance. We will sub out the concrete work to a local concrete company under the supervision of our superintendent.
6. Will rail be needed at all, scales for weight, etc.? Vision handles all scales, etc. and has a truck dump system for the removal of the chips from the trucks.
7. We assume Vision maintains employees, will offices be needed? Vision maintains employees and the offices will be included in Vision's power plant.
8. Does Vision procure its own liability insurance? YES. Vision procures its own insurance.
9. How much fuel would you anticipate storing on site? Fuel delivery by truck, rail, or both?
Five day supply, all stored in buildings. Fuel delivery will be by truck.
10. Does Vision have reliable wood supply sources? Would Vision consider some of the Corn Fiber? Do we need a special permit to burn Fiber in their boiler? Will the boiler be capable of firing fuels other than wood chips in the event of changing market forces? Vision controls access to 200% more wood supply than its current activities require. Vision never makes a proposal unless it has adequate fuel supply. If you examine the PPA, you will clearly see that Vision shoulders all financial responsibility for the supply of the fuel. If you provide us the specs of the corn fiber, we can specifically answer this question, in all aspects.
11. How are water, sewage, chemicals, electric, R&M and labor accounted for?
Water
Vision would tap into Client's existing water feed. If the Client believes Vision would use more than Client's existing water, consumption will be metered if not already, and Client and Vision would agree on the water per Klb and Vision would pay for anything over and above.
Sewage
Vision would tap into existing.
Chemicals
Vision will either agree to use the existing chemical system (new equipment added at biomass plant) or Client and Vision will agree on Client's existing chemical cost per Klb and Vision would bill Client at that rate for chemicals.
Electrical
Client and Vision would agree on Client's current cost of electric per Klb. Vision will bill Client at that rate. Vision will separately meter its biomass plant as its electric will be more than Client's because of the solid fuel.
Repair and Maintenance
Client and Vision will agree on Client's existing cost of R&M per Klb. Due to the age of existing equipment, Client's current R&M could be more than Vision's initial cost which over the long run should be more because of the solid fuel handling equipment; therefore, Client and Vision will negotiate a fair and equitable cost per Klb.
Labor
Client might want to keep its existing boiler room personnel to operate Vision's plant or Client and Vision would agree to said labor cost per Klb. Vision will provide the wood handling labor.
12. How long does Vision anticipate it will take to get an air permit for the site based on their current experience? Has Vision previously obtained an air permit for a biomass boiler operation? Vision has permitted biomass plants. It usually takes 180 days.
13. How will obtaining the required permit impact the project's schedule regarding financing? There is no impact or interference.
14. How will environmental violations be handled? As Vision's feed stock is a non-factor, there will not be any environmental violations from Vision's biomass power plant. For your "worst case scenario", if there was a violation from the biomass power plant it would be solely Vision's responsibility and Vision has no problem adding "hold harmless language" to the PPA covering this issue.
15. How is insurance handled? Vision secures the required insurance .
16 What are the complications regarding plant insurance (i.e. Factory Mutual) on our site? Vision has never had any insurance complications.
17. What is the impact regarding plant safety rules (i.e. drug policy) and outside contractor qualifications on our site? Vision is more than happy to adhere to any and all of your company's safety rules and regulations and they can be attached and made an Exhibit to the PPA.
18. How would you handle union vs. non-union employees, workers and contractors on our site? If your site is non-union, Vision would be non-union. If your site is union, Vision would be represented by the same union for the operation of its biomass power plant.
19. Are there typical effluent characteristics that pertain to a wood-fired biomass boiler? We do not anticipate any different characteristics than you now have in your existing boiler system.
20. How is ash disposed of, and who is responsible? The ash is always enclosed and is disposed of by Vision who has sole responsibility for its containment and disposal.
21. What are the complications regarding plant steam condensate return, boiler makeup water, deaerator steam requirement, chemical boiler feedwater treatment, flash steam utilization, operation of a steam turbine, and direct steam injection, along with steam header sizing? A major benefit of Vision's proposal is that it adds a complete redundant steam system to your existing steam system. Vision will tie into your existing steam header at a location agreed to between Client and Vision; therefore, the supply of steam from Vision's plant should have no effect whatsoever on the supply of steam to your processes. the same holds for the condensate return and boiler makeup water. Vision will have its own independent and redundant deaerator, feedwater, flash steam utilization and all other ancillary equipment needed for the operation of its boiler system.
22. How typical are PM's on the boiler, what are the uptime or reliability guarantees? Vision's PM will be typical. With the two complete steam systems, there should be 100% up-time for steam delivery for the process requirements.
23. How is Vision proposing to handle boiler outages (both planned and unplanned), and our ability to provide backup steam capability or trim steam for the plant demand? During the first five years, Vision plans to have its biomass boiler system down approximately five days per year for complete inspections and testings of the system. During this time, Vision would operate Client's boiler system. After five years, the planned outages could extend to seven days, depending on what Vision's inspections and testings revealed. This would be the worst case scenario. During all outages, Client's existing boiler system would be utilized to provide the steam necessary.
24. What do you expect our current boiler status to be? On low fire, shut down, etc. Your current boilers would be shut down and properly maintained by Vision to be utilized as backup.
25. What are the swing capabilities of your biomass boiler? Can the Vision boiler follow the plant steam demand on an instantaneous basis? Vision's biomass swing capabilities are equaled or superior to that of your gas fired boilers.
26. How are we compensated for boiler unavailability? Based on the two complete boiler systems, Vision believes this is a non-issue.
27. What would be the basis of the natural gas pricing validation, as related to our contracted cost of gas with our gas supplier? Fortunately, gas pricing validation can be easily accomplished due to the publication of NYMEX and the associated basis. Whatever purchasing strategy you used in the past to purchase your gas and then determine its price can be utilized as the mechanism to establish the pricing in the future.
28. What market is NG indexed against? NYMEX
29. How would the accounting and billing verification be handled on a daily basis? As the steam output of the power plant would be metered and measured real time with a computer hookup provided to Client, the accounting and billing verification becomes automatic. Included in the program would be the gas pricing mechanism agreed to between Client and Vision; therefore, a daily billing and savings report could be downloaded from the computer system.
FREQUENTLY ASKED QUESTIONS
NO CAPITAL COST TO CLIENT
It's not how business has always been done . . . it's how Vision does business better!
copyright 2007 Vision Power Systems, Inc