Fostering development of innovative solutions to Alaska’s energy challenges. UAF is an AA/EO employer and educational institution. Alaska Center for Energy and Power acep.uaf.edu • 907-474-5402 Project Snapshot: Micro-Liquid Natural Gas Project Background As diesel prices escalate, Alaskans connue to look for al- ternave methods for generang electricity and producing heat, especially in smaller, rural communies where energy costs can make up a substanal share of a family’s monthly expenses. The recent uncoupling of North American natural gas prices from their historic relaonship to crude oil prices has increased potenal economic opportunies for liquefied natural gas (LNG) to displace diesel in some applicaons. The concept of using LNG as a viable replacement in Alaska is gaining tracon. Understanding the logisc and transi- Applied Cryo Technologies (ACT) model ACT-LNG-12115-ISO is op- mized specifically for transporng liquefied natural gas (LNG) world- wide by rail, sea, or road and is also ideal for on-site LNG storage. Photo courtesy of appliedcryotech.com This study invesgates the viability of small-scale liquefied natural gas (LNG) distribuon as an alternave to diesel fuel in Alaska’s remote coastal villages. onal costs and the size of the potenal market is crical to assessing the economic viability of LNG in the state. In Alaska’s very small markets, micro-LNG is likely to be used first in where entry is least complicated commercially and the amount of incremental capital investment to use LNG is comparavely small. This study invesgated the eco- nomics of transporng LNG stored in “ISO containers” by barge for use in small, coastal power plants in Alaska as an alternave to diesel fuel. While large-scale, bulk transport of LNG for use in homes and businesses may be economi- cally feasible and commercially preferable, it was not part of this study since the volume of LNG required to be eco- nomically feasible generally exceeds demand for natural gas in most coastal communies. Project Description The study focused on quesons a potenal vendor would need to understand to determine if a group of remote coastal villages represented a viable market opportunity. It also looked at issues a community should invesgate to de- termine if LNG is a praccal opon for meeng its energy needs. Key costs — including costs for natural gas liquefacon, isocontainers, shipping, regasificaon and powerhouse conversion — were analyzed and translated to per-unit bases that match the very small markets in Alaska.