Exhibit 10.13
Burns
&
McDonnell logo
HOMELAND ENERGY SOLUTIONS, LLC
NEW HAMPTON PROJECT — PROJECT DEVELOPMENT ASSISTANCE
SCOPE OF WORK
1.0
INTRODUCTION
The
scope of work described herein is to support Homeland Energy
Solutions, LLC (HES) in project development activities for a
single 100 Million gallon ethanol and co-product development
facility using a coal gasification facility as the source of
energy. The plant is located near New Hampton, Iowa. Burns &
McDonnell (B&Mc) will serve as HES contact for this effort and
will utilize professionals from Hill & Associates (H&A) and
Econo-Power International Corporation (EPIC) in supporting the
completion of this effort. The term “Project Team” used
in this document shall refer to selected personnel from B&Mc,
EPIC, and H&A.
2.0
SCOPE OF WORK
Listed
below are tasks pertaining to scope of work for this project. Not
discussed below are scheduled meetings with the Project Team and
HES personnel. These meetings will take place about ever four
(4) weeks in Mason City or New Hampton and will discuss
status, open issues, etc.
2.1
Task 1 — Trip to China
EPIC
will set up the details of a trip to China to visit facilities
currently operating coal-burning gasifiers. Visits to at least two
facilities will be arranged for as many finance and project
personnel as needed. The purpose of this trip will be to verify the
operating record, performance, costs, etc. of coal-burning
gasification facilities identical or very similar to that proposed
for the HES New Hampton project.
2.2
Task 2 — Development of Front End Loaded (FEL II) Detailed
Cost and Preliminary Design Engineering
B&Mc
will perform design and FEL II level cost estimates (when
applicable) for the Balance of Plant (BOP) items outside the
gasifier. Deliverables will include the following:
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Overall Site Plan |
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Coal Handling System |
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Rail Loop / Spur |
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Preliminary Balance of Plant Piping and Instrumentation
Diagrams including: Cooling Water System, Plant Air System, Steam
System, Fire Protection System, Sulfur Loadout, Water Treatment,
Natural Gas Interconnection |
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One Line Diagrams for BOP Systems |
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Preliminary Building Layouts |
Burns
&
McDonnell logo
EPIC
will perform design and FEL level cost estimates (when applicable)
for the gasifiers.
Deliverables will include the following:
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Process Flow Diagram |
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Design Basis Description |
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Material Balances (design case and guarantee case) |
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Piping and Instrumental Diagrams |
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Electrical Single Line Diagrams |
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General Arrangement Drawings |
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Equipment Data Sheets |
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Equipment List |
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FEL II level Estimates or Gasifier Engineering, Equipment, and
Materials and Construction |
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Gasifier General Arrangements |
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Operating Data |
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Bar Chart Construction Schedule |
2.3
Task 3 — Refinement of Coal Supply and Transportation
Options
This
effort work will include identifying and meeting with coal
suppliers, railroads, barge companies, and coal terminal operators
to work out a potential coal supply chain and coal source or
sources. Third party coal suppliers may be identified and contacted
as well in order to obtain the most economic supply chain. One or
two of the nearby utility plants identified in the original study
will be contacted to ascertain their ability to supply coal.
Determining the best coal supply to the New Hampton plant will be
an iterative process that will require diligence and working
through all of the potential steps. Some of these will be dead ends
while some will provide potential and after the pursuit of the
options with potential, a best choice or combination of choices
that provides the best economics can be arrived at.
Initial
work will be via phone and e-mail; however, meetings with potential
prospects will be required in some cases.
Coal Supply — H&A will identify the
potential coal sources in the Wyoming Powder River Basin that can
most economically supply the HES New Hampton Plant. The coal
suppliers