It's been a few months since we've sent you an update on the Makushin Geothermal Energy Project. To be honest, we've had our heads down and after you see the list of our stakeholders and the diversity of ground we have to cover for such a project, you may offer up some forgiveness in the delay.
So here goes.
Today we are at the Final Investment Decision (FID) stage. The project construction and logistic plan is complete, engineering procurement and construction contract (signed with Ormat Technologies), and rigorous design criteria and specifications have been developed that allowed for the competitive and best value selection of all remaining contracts with speciality contractors and vendors. Nearly all contracts are in the queue awaiting the right time for their execution. We have three (3) years of work ahead (out of the remaining four (4) years of construction), based on the permits in hand or near completion.
Our focus now is securing the total project financing package. This process has taken longer than ever anticipated, which led us to our decision last fall to add a year to the project schedule. Our decision requires an amendment to the existing Power Purchase Agreement (PPA) with the city of Unalaska . That, understandably, involves a community process which must be complete before we are able to advance a final financial package – you get the drift it’s been like the game “whack-a-mole”.
It was in 2019 that Ounalashka Corporation and Chena Power came together to realize the benefit of the local geothermal energy residing within the Makushin Volcano. In 2020, we produced a short film shortly after we began that presented our vision. Today, that vision remains our true north. As with all development projects, such as these, it has constant twists and turns, however the project continues to march forward in lock step with that vision we had from the get go.
Our vision film below.
Our mission is to bring sustainable green geothermal energy to a remote Alaska island community. That same community is significant to America and the world, in that it’s in the Aleutian Islands, at the cross roads of the great circle shipping route and the pending northern shipping lanes. It has Alaska’s only year-round deep-water port, is the largest fishing port (tons of fish landed) in America, and is a strategic location for America's defense. In other words, very diverse with tremendous potential, but greatly benefiting from a sustainable source of locally produced energy. The word “Poster child” type project applies.
While we continue to dot the I's and cross the T's on copious amounts of contracts and agreements, we ask for your continued support to help us bring this project across the finish line. While we may be quietly working under the radar, you can rest assured it is our goal to realize this project with the maximum gains for Unalaska and its stakeholders.
Each of you have the ability to make a significant difference in the pace we move forward. We ask that you share our newsletter with those that may be new to the project or region. We are also at an ideal point to reconnect with many who first visited with us as we began this journey. Is there a collaboration that we've missed? An opportunity to leverage the plant and its resource with an upcoming project? A new development with your region, business or program that may be a good fit with our work? Please contact us here.
And in case you have forgotten where we are in the world. Here's our one minute "Makushin Possible" below.