Legislature(2013 - 2014)BARNES 124
03/04/2014 01:00 PM House ECON. DEV., TRADE & TOURISM
| Audio | Topic |
|---|---|
| Start | |
| Presentation: "transforming Alaska - Airships" by Michael Smith, Ceo, & Kurtis Zell, Development Coordinator, Merged Energy Solutions | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, TRADE, AND
TOURISM
March 4, 2014
1:06 p.m.
MEMBERS PRESENT
HOUSE TRANSPORTATION
Representative Peggy Wilson, Chair
Representative Doug Isaacson, Vice Chair
Representative Lynn Gattis
Representative Craig Johnson
Representative Bob Lynn
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, TRADE, AND
TOURISM
Representative Shelley Hughes, Chair
Representative Lynn Gattis
Representative Pete Higgins
Representative Craig Johnson
Representative Geran Tarr
MEMBERS ABSENT
HOUSE TRANSPORTATION
Representative Jonathan Kreiss-Tomkins
Representative Eric Feige
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, TRADE, AND
TOURISM
Representative Bob Herron
Representative Kurt Olson
Representative Lance Pruitt
Representative Harriet Drummond
COMMITTEE CALENDAR
PRESENTATION: "TRANSFORMING ALASKA - AIRSHIPS" BY MICHAEL SMITH~
CEO~ & KURTIS ZELL~ DEVELOPMENT COORDINATOR~ MERGED ENERGY
SOLUTIONS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MICHAEL SMITH, Chairman; Chief Executive Officer
Sky Lift Aeronautics - Merged Energy Solutions (MES)
Anaheim, California
POSITION STATEMENT: Provided a presentation "Transforming
Alaska - Airships".
ACTION NARRATIVE
1:06:12 PM
CHAIR PEGGY WILSON called the joint meeting of the House
Transportation Standing Committee and the House Special
Committee on Economic Development, Trade, and Tourism to order
at 1:06 p.m.
1:06:45 PM
Representatives, Gattis, Lynn, and Isaacson and P. Wilson of the
House Transportation Standing Committee were present at the call
to order. Representative Johnson arrived as the meeting was in
progress. Representatives Gattis and Hughes of the Special
Committee on Economic Development, Trade, and Tourism were
present at the call to order. Representatives Johnson, Higgins
and Tarr arrived as the meeting was in progress.
^Presentation: "Transforming Alaska - Airships" by Michael
Smith, CEO, & Kurtis Zell, Development Coordinator, Merged
Energy Solutions
Presentation: "Transforming Alaska - Airships" by Michael Smith,
CEO, & Kurtis Zell, Development Coordinator, Merged Energy
Solutions
1:07:19 PM
CHAIR P. WILSON announced that the only order of business would
be a Presentation: "Transforming Alaska - Airships" by Michael
Smith, CEO, & Kurtis Zell, Development Coordinator, Merged
Energy Solutions.
1:08:55 PM
MICHAEL SMITH, Chairman; Chief Executive Officer, Merged Energy
Solutions (MES), said that a thorough presentation on airships
would take hours but today he will condense his remarks and give
members as much information about the airship as possible. He
hoped members received supplemental information with
specifications on the airship. He stated that Sky Lift
Aeronautics LLC, Merged Energy Solutions was formed in 2012 to
become the exclusive marketing, sales, and leasing
representative for Lockheed Martin's hybrid aircraft. He
related that if anyone wanted to purchase an aircraft they would
need to go through Skylift Aeronautics to do so. The beauty of
this airship is that it is going to transform so many aspects of
business that he characterized as being "a game changer." He
highlighted the "Benefits to Alaska" including economic growth,
lower operating costs versus fixed wing, more productivity, new
jobs, safer transportation, expanded domestic and international
commerce, and cleaner environment [slide 1].
CHAIR P. WILSON remarked that she is anxious to see how it will
happen.
1:11:30 PM
MR. SMITH discussed the economics [slide 2]. He acknowledged
significant mining is happening in Interior Alaska. The
infrastructure such as roads and power that it takes to get from
civilization to the mining site would cost hundreds of millions
and perhaps billions to accomplish, but the capabilities of the
airship, including vertical loss, the drop down and landing
site, would save time, effort, and needless expense. He
commented the limited space an airship needs to land,
approximately a flat area of land about the size of a football
field. Therefore, using the airship could significantly reduce
the cost of any type of infrastructure. He turned to
alternative shipping, noting the fuel savings since the airship
can go point-to-point. He explained the process the airship
uses is to load, fly, and drop down. With respect to oil and
gas applications, he speculated that the airship would have
ability to transport various types of fuel, including liquid and
liquefied natural gas (LNG). He pointed out this is significant
since the airship can do a number of things fixed wing aircraft
cannot. In terms of alternative transportation, he mentioned
the Dalton Highway. The aircraft can fly year round, in
temperatures ranging from [a negative] 40 degrees to 122 degree
temperatures. He described the process again, such that the
airship can fly up, drop the payload and come down. The airship
is not yet rated for passengers, but he anticipated that within
one to one and a half years it will be certified by the Federal
Aviation Administration (FAA) for transporting passengers so the
airship could provide an alternative to ferry or bus service.
In terms of on the spot medical response, the airship is so
stable that it could carry an operating room on board. Thus, it
could fly into any disaster area or respond to any medical need.
1:16:00 PM
REPRESENTATIVE LYNN asked about the cross winds restrictions of
the airship.
MR. SMITH answered that the airship can handle up to 45 knot
crosswinds. The airship aerodynamics airship is quite effective
plus it has "fly by water" which means the navigational and
drive system piloting the airship was taken from the F35. He
emphasized its ability to compensate even though it looks quite
huge testing in 40 knot winds did not move the airship.
1:17:35 PM
CHAIR P. WILSON asked about the airspeed.
MR. SMITH responded that the three airship sizes range from the
25, 100, and 500 tons. In further response to a question, he
answered that the 25 ton airship travels at 60 knots or about 90
miles per hour. The midsize ship travels at 80 knots and the
largest ship is capable of 120 knots.
1:18:34 PM
CHAIR HUGHES clarified the temperature range. She asked whether
the lower range temperature is a negative 40, or 40 below zero.
MR. SMITH answered yes, in fact, the colder the temperature, the
better the airships fly. In response to a question, he agreed
that the airship is better suited to Alaska than for use in the
Lower 48. He hoped the airship will get its biggest test in
Alaska.
1:19:45 PM
REPRESENTATIVE GATTIS remarked that Representative Lynn and she
both pilot fixed wing aircraft so they will probably have some
aviation questions. She asked whether the testing will be done
in Alaska due to its temperatures or because it is a large
state.
MR. SMITH answered that the company wants to see how the
airships perform in cold temperatures and the company prefers to
test in the U.S. rather than in Canada. In further response to
a question, he reiterated that it would be a cold temperature
test
1:21:21 PM
CHAIR HUGHES commented that a smaller version of the airship is
in a Lockheed Martin hangar and anticipate signing an agreement
on April 1 with them to build a 25-ton airship with hopes that
the airship will be ready for flights next February in Alaska.
She asked whether the ship will be taken from California to
Anchorage.
MR. SMITH answered that is correct and the flight would be from
Palmdale, California to Anchorage.
CHAIR HUGHES thought it would be helpful for people to know the
timeframe. She asked him to cover the safety aspects of the
airship and why this aircraft is safer than the Hindenburg blimp
since many people think of that disaster.
1:22:50 PM
MR. SMITH turned to the tourism industry, noting that once the
aircraft becomes passenger rated it will have implications. He
related that capacity for a 20-ton aircraft is 8 passengers, but
if the cargo compartment was converted, it could transport 100
passengers. Since it can be adapted to a passenger aircraft and
the slow moving flight would be attractive to tourism. He said
people in Las Vegas want to use a 100-ton airship as a
restaurant and fly over the Grand Canyon and the city. He said
that almost everything is possible with these airships.
1:24:51 PM
CHAIR P. WILSON asked for clarification on the status. She
related her understanding that currently none are being flown
but they will do some testing in Alaska next year.
MR. SMITH answered yes.
1:25:16 PM
CHAIR HUGHES referred to the passenger aspect and asked for the
capacity of the 500-ton airship.
MR. SMITH indicated a 2,800 person capacity for the 500-ton
airship, with 1,200 on one deck and 1,200 plus the crew. He
pointed out that the aircraft has windows on all sides.
1:26:02 PM
CHAIR P. WILSON asked about the cost and whether an airship will
be economical to buy and operate.
MR. SMITH recommended the state should use the small to medium
aircraft for tourism use since taking 2,800 passengers is
feasible. He reported the estimated cost for the small airship
at $45 million, the medium airship at $83 million, and the 500-
ton at $273 million. He acknowledged that the cost analysis
hasn't been done, but he envisioned it would be similar to
operating a cruise ship. At this point the airships are in the
concept phase, but he further envisioned the large ones could be
used as "flying hotels." He characterized the uses of the
aircraft as being "pretty remarkable." In further response to a
question, he agreed operating costs would be similar to a cruise
ship.
1:27:38 PM
CHAIR HUGHES asked him for a cost comparison for regular
aircraft.
MR. SMITH compared the large airship as being equivalent to a
Boeing 747 airliner, which costs $273 million to build, but
keeping in mind a Boeing 747 carries 200 to 250 passengers
whereas the ship can carry 2,800 passengers. The medium size
airship would be similar to a "C 7" which is basically a cargo
ship, can carry about three times the load capacity as a
[Lockheed C-5 Galaxy] "C-5" - the cost of a "C 5" is a $120
million whereas the medium size airship would cost $83 million.
The small airship is similar to a [Douglas DC-10 Advanced Tanker
Cargo Aircraft] or a [Lockheed Martin C-130J] which cost about
$66 million and carry three times the amount.
1:30:12 PM
CHAIR HUGHES asked for further clarification, that the small
airship would cost $45 million and could carry triple the load
of a C130J equivalent that would cost $66 million.
MR. SMITH answered yes.
1:30:45 PM
CHAIR HUGHES asked him to discuss the operating costs of the
airship.
MR. SMITH compared the operating cost as being about one-third
the cost of the fixed wing aircraft, but it depends on the use.
For example, it would be more feasible to use the hybrid airship
within the state. In some instances international travel costs
are less expensive and in others the operating costs are more
expensive. He offered to provide copies of a study to the
committee.
1:32:02 PM
REPRESENTATIVE LYNN asked about the airship's speed. He
suggested that the small airship speed of 60 miles per hour was
too slow to fly from Juneau to Prudhoe Bay plus the airship
wouldn't be moving large numbers of people to a project. He
could see that using an airship could be effective to move large
pieces of equipment, but it might be limited as a passenger
carrier in Alaska.
MR. SMITH agreed it depends on the application. He explained
that these airships are designed for "other than" passenger
transport, but again, it would depend. He suggested if the seas
were rough and safety issue arose it could be a factor.
1:33:46 PM
REPRESENTATIVE HIGGINS asked how much cubic feet of helium it
would take to fill a [20-ton airship, the cost, and how long it
takes for the helium to dissipate or if it would need to be
reenergized.
MR. SMITH answered that envelope volume for the 20-ton airship
is 1.3 million cubic feet. The explained the airship is
designed with three bladders that takes up three-fourths of the
interior filled with air. The perimeter or the space between
the outer envelope and the [bladder] is filled with helium,
which keeps the integrity of the structure together and acts as
a frame. He acknowledged that the [bladder] will lose a little
helium, which is minimal unless the airship has a gaping hole.
He related that the airship maintenance is done quarterly, and
the helium is recharged, which means that it is removed,
cleaned, and returned. The bladder will keep the frame
compressed, he said. He explained that the cost of helium is
all inclusive of the sale so he was unsure of the cubic foot
cost for the helium.
1:36:42 PM
CHAIR P. WILSON related her understanding that the airship is
purchased "full" and is ready to do, and hardly needs to be
adjusted unless something happens.
MR. SMITH agreed; noting that the helium is refilled during
maintenance.
1:37:16 PM
REPRESENTATIVE HIGGINS questioned why the helium doesn't lose
its charge.
MR. SMITH responded that it will lose some of its charge, but
the Federal Aviation Administration (FAA) and by the Merged
Energy Solutions (MES) will require, the helium charge will be
checked and it will be brought up to standards. In further
response to a question, he agreed the maintenance is conducted
quarterly. He further clarified that the maintenance for the
airships is just like any fixed wing aircraft, but it isn't done
as often. He acknowledged that the longer the aircraft is in
production, the more the MES will learn. He anticipated that
the maintenance program would be adjusted over time.
1:38:48 PM
CHAIR HUGHES referred to the specifications in members' packets,
and noted that diesel is required. She asked whether the diesel
is used for takeoff. She further asked whether diesel is used
once the airship is airborne. She recalled that the company is
working to get away from using diesel.
MR. SMITH answered that the airships have Mercedes engines that
are basically diesel fuel engines. The MES has been working on
bio-diesel which would take the place of diesel and would burn
98 percent clean. He explained that the aircraft is like a
helium balloon, which is like a regular aircraft. It has lift,
but is built for aerodynamics. He said that if the engines were
shut down, the airship would not shut off engines and it would
drop down and float.
1:41:04 PM
MR. SMITH turned to disaster relief [slide 3]. He suggested
that if the airships had been used during Hurricane Katrina,
that it would have saved lives. The ships can pick up
passengers, contain a hospital, and land on water and land
during disaster situations.
1:41:45 PM
CHAIR P. WILSON asked about hospital applications. She asked
whether the airship could sit on the ground and then taken
somewhere else to accomplish the rescue efforts.
MR. SMITH answered yes. He said that would be the optimal
situation. He envisioned that the main purpose would be to get
to point A, drop down, and treat patients instead of evacuating
them to a hospital, but he did not envision the operating room
in use while airborne. He offered his belief that this airship
would be critical for life threatening issues in which treatment
must be delivered within a few hours.
1:42:54 PM
REPRESENTATIVE LYNN recalled him mentioning "fly by wire"
controls. He understood that there wouldn't be any mechanical
linkage, but there would be wire. He asked whether crosswinds
would affect the airship. He wasn't certain he understood if
the airship was programmed.
MR. SMITH recalled that Lockheed Martin had issues with cross
winds, but once the "fly by wire" was programmed, that it
minimized the issues. He explained that the engines on the side
of the ship can rotate 180 degrees, which help to combat the
elements.
REPRESENTATIVE LYNN said he could see that with the moveable
engines.
1:44:25 PM
MR. SMITH suggested that search and rescue would be similarly
applicable, that the airship can land in the water if a ship
capsizes and pick up the survivors. The airships are applicable
for fishing, since the fishing boat cargo could be unloaded to
the airships and the fish could be transported and the airships
have firefighting capabilities. He surmised numerous forest
fires start due to lightning. He envisioned the large airship
could transport liquid to douse out any fires. For example, if
an oil platform was on fire, the airship could fight the fire
from a logistical distance.
1:46:31 PM
CHAIR P. WILSON asked whether any other companies in the world
are using this technology.
MR. SMITH answered no. He elaborated that the airship can
hover. When using nozzles and pumps on fixed crafts such as
fire engines or stationary platforms the technology exists, but
this has been converted to fit the airship. He referred to page
[13] that showed an oil platform being sprayed. In further
response to a question, he said that the airship technology is
not being used in the world; however two major companies besides
Lockheed Martin are trying to build these ships, but he
estimated the companies lag five years behind Lockheed
technology.
1:48:40 PM
REPRESENTATIVE GATTIS asked for any reasons this technology
hasn't been used in the past 50 years.
MR. SMITH answered that the past experience with the Hindenburg
disaster created a stigma. In the past ten years engineers have
considered the options for a hybrid airship or a blimp. About
10 years ago, engineers realized another way to build an
operational vehicle of this type that could make it safe. For
example, the airship uses a combination of helium and air and is
more aerodynamic. Previously, it was a long tube that held
hydrogen. He characterized this type of aircraft as being the
safest aircraft. The airship has been tested. For example, an
AK 47 could riddle the side of the aircraft and it will not come
out of the air. Certainly, it would start to lose helium, but
the beauty of the bladder system is the ability to increase the
oxygen to keep the craft taut and the airship can be brought
down slowly. Further, a patch kit can be used. He noted that
the outer envelope tensile strength is 1,500 pounds per square
inch. The patch kit contains the same amount of tensile
strength. He related a scenario in which someone shoots an RPG
weapon; it will go through the airship, leaving a gaping hole.
In this instance, the airship would drift down about 10 miles
per hour, but the cargo bay is protected by the landing gear.
He suggested the airship would still float. He concluded that
the safety factor is quite high for the airships.
1:52:50 PM
REPRESENTATIVE GATTIS understood the stigma and that perhaps the
technology hadn't been developed. She asked whether finances
also play a role since fuel is so expensive. She specifically
asked if fuel costs play a factor.
MR. SMITH answered that a number of factors are involved, for
example, shipping costs. He related that the largest airship
has the capability of hauling 300 automobiles, with a 6,800
miles range at a cruising speed of 100 knots. Currently, if
Detroit ships vehicles to China, the vehicles are put on rail to
the coast, loaded on a ship, which takes one month to arrive in
China and the vehicles are transported by rail to the final
destination. The airships could go directly to the facility and
go point to point. This eliminates a number of steps, which
could decrease the cost to ship the vehicles. He said that many
companies are interested in the airships. He anticipated that
in the U.S., rail will be the "king" since the infrastructure
exists. The airship can be most effective for routes not
accessible by rail.
MR. SMITH related a scenario in which LNG must be distributed at
the end of the pipeline. Typically, it would be transported by
truck, but an airship could go directly to the field and load up
and distribute the LNG. He offered his belief that the airship
has a number of advantages. He suggested that feasibility would
depend on a number of factors, not just on fuel costs.
1:57:36 PM
REPRESENTATIVE LYNN asked for the timeline out of factory and
when it would arrive in Alaska.
MR. SMITH stated that MES will sign the contract with Lockheed
on April 1, 2014. He anticipated it would take Lockheed Martin
nine to 10 months to get the aircraft built. He further
anticipated that the airship would come to Alaska in February or
March 2015. In further response to a question, he said the
airship would fly to Alaska.
CHAIR P. WILSON asked to be informed.
1:58:42 PM
REPRESENTATIVE HIGGINS fabric has been produced. He asked for
the life span of the hybrid airship.
MR. SMITH answered that the envelope must be replaced every 15
years at an estimated cost at $5 million, which would be
factored in as a maintenance issue.
1:59:35 PM
CHAIR HUGHES requested that the airship stop in Juneau so the
legislature can look at it. She referred to slide [8] entitled
"It's about the payload, as well as the platform." She
suggested that the advantage of being able to transport heavy
equipment in areas without infrastructure.
MR. SMITH answered that the functions have basically already
been covered. He pointed out one use would be to clean up,
which has an implication for use in logging and forest
management. He recalled that shipping a rocket booster to the
launch is very costly. He offered his belief the airship would
be an ideal alternative for shipping. Additionally, carrying
windmills could be a routine application. He suggested the
number of applications for the airship is left to the
imagination.
2:02:31 PM
MR. SMITH recalled a question during another committee and
whether the airship could transport platforms to specific areas,
and depending on the platform, even if it took three to four
trips, it could still pay for itself due to the time savings in
getting the platform operational. In response to a question, he
discussed safety factors in using helium versus hydrogen. He
explained that Hydrogen is very volatile, whereas helium has a
zero combustion factor. Helium will not explode. Lightning
could damage an engine, but it would not take the airship out of
the sky and it would be impervious to electricity. Thus, the
airship has a very high safety factor. He offered his belief
that the airship has advantages and while it will not replace
fixed wing aircraft, it has advantages a fixed wing aircraft
does not. Each is useful, he said. He emphasized that this
could change the dynamics in Alaska in a number of ways. He
anticipated that once the airships are in use, more and more
ways to use the aircraft will be found.
2:06:45 PM
CHAIR HUGHES remarked that it could be "a game changer." She
pointed out that it costs less to build than a regular aircraft
and it costs less to operate. She referred to [slide 14]
entitled "LNG Transport," which is an artist's rendering of what
an airship might look like.
MR. SMITH acknowledged it is an artist's rendering. He
anticipated that the payload bay would likely be cylindrical
tanks. He emphasized that the option to add LNG tanks exists
and the company currently is in discussions in Louisiana for LNG
transports. He said the MES engineers are working on a new
design just for LNG alone, which would likely be used on the 100
and 500 ton aircraft.
CHAIR P. WILSON asked whether it could be transported from the
North Slope treatment plant without necessitating building a
natural gas pipeline.
MR. SMITH agreed that the airship could take transport gas from
the source to the destination point. He pointed out that it is
possible to eliminate high cost of infrastructure in mining. He
suggested a few dozen aircraft could be used for transport,
although he surmised a few could "go a long way."
2:10:46 PM
CHAIR P. WILSON said she is dreaming about the implications of
transporting LNG from Prudhoe Bay to Fairbanks an on to
villages, Anchorage, and Nikiski.
MR. SMITH answered absolutely. He exclaimed the advantages of
point to point delivery, which could eliminate any trucking from
the distribution point, which is more economical and safer.
2:11:56 PM
CHAIR P. WILSON suggested that gas could be transported to
Japan, India, or China.
MR. SMITH suggested that the 500 ton airship could be taken from
point to point with a 6,800 mile range.
2:12:32 PM
CHAIR P. WILSON reiterated the timeline and asked for
clarification on the deadline to arrive in Alaska.
MR. SMITH anticipated the airship would arrive in Alaska in
February or March 2015.
CHAIR P. WILSON asked whether he would do the "beta testing" at
that point. She asked for the timeline for ordering airships.
MR. SMITH answered it would depending on size ship. Lockheed
Martin will build the 25-ton airship out of Palmdale. The MES
anticipates acquiring 1,000 acres at Millington Naval Base in
Tennessee to build a new hangar to manufacture the 100 ton and
500-ton airships, which should take approximately two years. He
stated that Lockheed Martin needs approximately one year
production on the 20-ton airship, prior to building the 100-ton
model. He speculated that by early to mid-2017 to early 2018 as
the 100 ton to 500-ton airship production date. However, he
suggested that the 25-ton airship could be available next year
for transporting LNG. He suggested the smaller aircraft would
be most appropriate for delivering LNG to villages.
2:15:30 PM
ADJOURNMENT
There being no further business before the committee, the joint
meeting of the House Transportation Standing Committee and the
House Special Committee on Economic Development, Trade, and
Tourism was adjourned at 2:15 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Transforming Alaska - Kurtis Zell.pdf |
HEDT 3/4/2014 1:00:00 PM |