Back on November 16, I attended a workshop to review work plans being considered by the Hawai‘i Greenhouse Gas Emissions Reduction Task Force to recommend to the legislature at year’s end.

I was struck by the fact that geothermal was not chosen as an alternative. Geothermal has no greenhouse gas emissions, and it results in lower electricity rates.

Why was it not included?

The utilities plan to transition to biofuels instead of continuing to use fossil fuels, but consider this: Biofuels involve farming. At today’s prices, a farmer would get 6 cents per pound for growing jatropha or palm oil. They obviously would not do it for that price. When oil is at $200 per barrel, they would get 18 cents per pound. Still not enough. I believe farmers might become interested when biofuel feed stock pays 24 cents per pound, which is the equivalent cost of $270 per barrel oil.

So we can probably assume that we would not see very much local biofuel farming in the near future. Instead, the biodiesel would probably come from Indonesia. It would be certified as eco-friendly by a third-party, green organization. Whether or not the oil is brown or green, though, the bottom line is that it will be costly.

The legislation requires that adverse effects on small businesses be considered. It is fair to say that fossil fuel costs will rise and, therefore, electricity rates will rise too. When oil hit $147 last summer, it was disastrous for small business folks.

On the other hand, the estimated break-even price of geothermal is approximately $57 per barrel and it will stay stable for as long as we can see.

Why is geothermal not being considered?

I submitted the following comments:

My name is Richard Ha. I am testifying on behalf of myself and the 60-plus employees who work with us at Hamakua Springs Country Farms at Pepeekeo, here on the Big Island.

Why is geothermal energy not considered?

1. Geothermal energy does not give off any greenhouse gas emissions.
2. Geothermal energy has an Energy Return on Investment (EROI) ratio of 10 to 1—and, unlike fossil fuels and bio fuels, the EROI will not decline in the future.
3. Geothermal breaks even at an oil price equivalent of $57 per barrel.
4. It is available in abundance on the Big Island.
5. Unlike 20 years ago, there is only a handful of opponents.
6. Unlike the other two alternatives for base power—fossil fuel and biofuel—geothermal is much cheaper.
7. There will be a huge benefit to small businesses if geothermal is sourced right here on the Big Island. It will give the Big Island a competitive advantage to the mainland at some future time.
8. The EROI for geothermal is 10 to 1 and will never decrease; unlike oil, which was at 100 to 1 in the 1930s. It is in the 10-15 to 1 range today. It will steadily decline — that is not in dispute. How soon will it hit 3 to 1 is the issue.
9. Since geothermal is base power, we can potentially source up to 80% of HELCO’s power from this source. On the other hand, wind and solar can be depended upon for only 20% or so.
10. Because geothermal is the cheapest source of base power, it will have the biggest positive effect on discretionary income for lower income folks.
11. Choosing the high cost alternative for base power will send a message that the utility does not care about the situation of the lower income folks. And, the native Hawaiian community.

EROI is calculated in energy units, not dollars. It gives one a sense of direction and causes us to  question solutions that have low or declining EROIs. For example, shouldn’t we question biofuels as a solution when the EROI is less than 2 to 1?

I recommend that EROI should be included in all energy studies. It is a fundamental shortcoming of this study.

In the 1930s, we got 100 barrels of oil from the energy in one barrel of oil. In the 1970s, we got 30 barrels from one barrel. Now, we get 10 barrels from the energy equivalent of one barrel of oil.  This is understandable, and it will continue to go down as oil becomes more and more difficult to access. At some point before the last drop of oil is sucked from the ground, the EROI will be 1 to 1 and there will be no point in going further.

Charles Hall authored a paper: What is the minimum EROI that a sustainable society must have?  In it, he says that the EROI ratio must be no less than 3 to 1 in order to maintain a sustainable society.

Fossil fuel oil EROI is approximately 10 to 1 and dropping steadily, while geothermal is 10 to 1 and will not decline further. Bio fuels have an EROI of less than 2 to 1. Clearly, geothermal is the best choice.  

Aloha,
Richard Ha