Category Archives: Current Affairs

Gail Tverberg on Egypt & Middle East

I find Gail Tverberg to be the most levelheaded commentator about our world energy situation.

This blog post of hers includes an audio clip about the factors at play in Egypt and the Middle East right now.

Egypt’s Problems – Robert Knight interviews Gail Tverberg

A few days, ago, Robert Knight of WBIA public radio in New York City interviewed me about the problems in Egypt. The interview touched a little on Libya’s problems as well. I am not certain of when the interview actually aired. He asked me about a number of issues, including peak oil.

I thought a few readers might be interested. This is a link to the MP3 recording. It is about a half-hour in length. Read the rest

Hydrogen-Powered Big Island Buses

The University of Hawai‘i’s Hawai‘i Natural Energy Institute (HNEI) is working on a very interesting project. They are going to use geothermal electricity to generate hydrogen to power two County of Hawai‘i buses.

Because the hydrogen will be stored in cylinders, the process can be turned off and on as necessary to help the electric utility stabilize the grid.

The biggest obstacle to using hydrogen as a transportation fuel is cost. Most of the time, hydrogen is extracted from fossil fuels, whose price will keep on rising.  But hydrogen can also be obtained by electrolysis – running an electric current through water – at the geothermal plant, where costs are low and stable.

The beginnings of this project date back several years to when we did the E Malama ‘Aina sustainability festival. That’s when and where I met Guy Toyama, who had a demonstration hydrolysis project that used electricity generated from a stream in Hakalau.

Guy has a company that does hydrogen projects. He speaks Japanese and he goes all over the world looking for processes that will make Hawai‘i attractive as a place to do hydrogen demonstration projects. He wants to attract major car companies to do their field testing on the Big Island. If you start seeing hydrogen fueling stations pop up on the Big Island, it will likely be because of him.

At the sustainability festival, Kimo Pa, our Hamakua Springs farm manager, and I saw the hydrogen bubbling up from water that had electricity passing through it. I introduced Guy to the folks in Iowa who were exploring making NH3 (ammonia) for fertilizer and for transportation.

That evolved into asking Rick Rocheleau, head of the HNEI, how we could make hydrogen or NH3 from geothermal energy to use for transportation and fertilizer. Rick got interested and allowed this direction to develop. Mitch Ewan, who is in charge of hydrogen projects at HNEI, is the one who conceived this current project.

The following press release announces that HNEI will soon issue a request for proposals to do this project. None of this would have been possible had it not been for the active support of the folks at Puna Geothermal Venture (PGV), Mike Kaleikini, PGV’s plant manager in particular.

Here is the press release:

Honolulu, HI – The Research Corporation of the University of Hawaii (“RCUH”), on behalf of the University of Hawaii’s Hawaii Natural Energy Institute (UH-HNEI) plans to issue a Request for Proposal (RFP) the week of January 4th 2011 for the supply of a “Turn-Key” hydrogen production and fueling system as a component of a Naval Research Laboratory (NRL) and US DOE project to demonstrate hydrogen energy systems as a potential grid management tool.   The objective of this project is to evaluate the feasibility of utilizing a hydrogen production and storage system to mitigate the impacts of renewable energy generation intermittency on the Big Island electrical grid. A unique element of the overall program is the demonstration of an electrolyzer as a controllable variable load that can provide grid services such as:

·        Up regulation;

·        Down regulation; and

·        Off-peak load (relieving curtailment of as-available renewable energy).

As background, regulation is responsible for maintaining the frequency of the grid at 60 Hz.  This is accomplished by using a real-time communication signal directly controlled by the grid operator.  The regulation control signal can call for either a positive “Up regulation” or negative “Down regulation” correction.  If load exceeds generation, frequency and voltage drop, and the grid operator relays a signal to generators requesting “Up regulation.”  When generation exceeds load and frequency increases, the grid operator requests “Down Regulation” and asks generators to reduce generation.

In this mode, the electrolyzer would be operated at a production rate that would be determined by the demand for a combination of transportation fuels, auxiliary power, and chemical feedstock production.  The electrolyzer would have the ability to reduce its load (i.e. ramp down) in response to a loss of renewable generation on the system.  This capability to quickly drop load is equivalent to “up-regulation” carried by generating units on the system.  The hydrogen energy system could also provide a quick transient increase in load (i.e. ramp up) that would be useful in loss-of-load events, such as a loss of transmission lines.  For this service, the difference between the maximum capacity of the electrolyzer and the steady state defines the ability of the electrolyzer to provide down regulation.  Hydrogen produced from the system could be used for a variety of value-added products, including use as a transportation fuel for two Ford E-450 shuttle buses operated by the County of Hawaii Mass Transportation Agency.  Optimized use of the electrolyzer and high value products are intended to increase the use of renewable energy resources, and reduce barriers to the introduction of further hydrogen infrastructure in Hawaii.

The RFP is intended to promote open and transparent competition among parties able to design, fabricate, and install the system at a geothermal plant on the Big Island of Hawaii.  A key design driver is the ability for remote monitoring and control of the system over the Internet.  This RFP will be technology neutral and any type of electrolyzer i.e Alkaline or Solid Polymer Electrolyte may be proposed.  Proposers may include teams comprised of systems integrators and electrolyzer manufacturers.  A primary focus of this program is rapid delivery and installation of equipment with a target operational readiness date of August 30th, 2011.  When released, the RFP and accompanying information will be published at http://www.hnei.hawaii.edu.  Any prospective offeror desiring an explanation or interpretation of the RFP must request it in writing (emailed to: Mitch Ewan at ewan@hawaii.edu) no later than January 31st, 2011 with the subject line “RFP for Turn-Key Hydrogen System.”  It is planned to conduct a bidders meeting and / or webinar in Washington DC on January 18th, 2011.  Proposals must be received by RCUH no later than 4:00 PM HST, February 15th, 2011.

Farmers Not In Favor of Pasha Entering Inter-Island Barge Service

From the Star-Advertiser article:

Pasha gets PUC approval for interisland shipping
By Star-Advertiser staff

POSTED: 01:30 a.m. HST, Sep 21, 2010

The Public Utilities Commission has authorized Pasha [Hawaii Transport Lines LLC] to operate between Honolulu, Kahului, Hilo, Nawiliwili, Barbers Point and Pearl Harbor through Dec. 31, 2013. The commission will then evaluate the effects of the service and make a final decision on the company’s request to operate in the market permanently.

Young Bros. argued that Pasha will only serve the biggest ports and the most lucrative lines such as autos, heavy equipment and construction materials. Young Bros. also said that Pasha will “cherry-pick” the most lucrative routes and could harm local farmers and cattle ranchers who receive discounts subsidized by higher rates on other goods…. Read more

I think that allowing Pasha to operate in the inter-island barge service, without forcing them to provide the same services that Young Brothers provides, will jeopardize Hawai‘i’s food security.

Young Brothers gives locally grown products a 30 percent discount. They are not forced to do it; they worked with farmers to come up with that rate. And Young Brothers services the ports at Moloka‘i, as well as Lana‘i. Pasha will not be servicing those ports, nor moving agricultural products.

Farmers know that food security involves farmers farming. And that if farmers make money, farmers will farm. Young Brothers helps farmers to make money.

It is clear to us that if Young Brothers’ profitability is at stake, they will be forced to rethink the farmers’ discount. That is not good for farmers.

Farmers are not in favor of allowing Pasha to unfairly compete with Young Brothers.

Electric Car Plant Coming to Oahu

Did you see this article in the Honolulu Advertiser on Friday?

Hawaii chosen as manufacturing site for electric mini-cars
S. Korea automaker to build, sell vehicles here, bringing up to 400 jobs

By Greg Wiles
Advertiser Staff Writer

A South Korea-based company has committed to build a $200 million assembly plant on O’ahu that would turn out two-seat electric cars and other vehicles and employ as many as 400 people.

CT&T Co. said it has narrowed its search to four sites on which to build a 100,000-square-foot plant from which it would also sell its elfin vehicles, which are mostly targeted at short jaunts on city and neighborhood streets.

The company and state officials announced the plans yesterday flanked by a dozen of the cars at the state Capitol. Later they signed an agreement pledging to cooperate on meeting each other’s goals….(Click here to read more)

“The Coming Collapse of the Middle Class”

Here is a very interesting video that talks about the incredible changes that have taken place in American in only one generation.

It’s called “The Coming Collapse of the Middle Class: Higher Risks, Lower Rewards, and a Shrinking Safety Net,” and it’s a talk by distinguished law scholar Elizabeth Warren, who teaches contract law, bankruptcy, and commercial law at Harvard Law School.

She is an outspoken critic of America’s credit economy, which she has linked to the continuing rise in bankruptcy among the middle-class.

Her talk covers much more than that, though. [Editor Leslie’s note: I just sat and watched that entire one-hour video, practically without blinking. I didn’t have time to, but it is fascinating and I watched it all the way to the end. I highly recommend it.]

Some of her points: In the 1970s, a married couple with two kids had one parent in the workforce and saved 11 percent of their income. To get into the middle class, their kids needed to get a high school diploma and to be willing to work hard. That 12 years of education that their children needed, to get into the middle class, was free.

Warren says that the most important thing that happened in the first two-thirds of the 20th century was that women entered the work force.

In the 2000’s, a similar married couple with two kids must have two people in the work force – because, she says using numbers adjusted for inflation, median mortgage payments in 2005 are 76 percent higher than they were in 1970. Health insurance – in a healthy family with employee-sponsored health insurance – costs the family 74 percent more. Childcare costs have increased 100 percent, and as compared to the 1970s family a 2000s family has the expense of a second car because of that second person in the workforce, and because of that second income their tax rate is up by 25 percent.

In comparable dollars, the 2005 family is actually spending much less on clothes, food, appliances and cars than the 1970s family did; it’s the non-flexible, big ticket and important expenses that have increased so dramatically and that require that second income.

So a comparable married couple with two kids in 2005 has no savings (compared to the 1970s couple, who saved 11 percent of their earnings), and 15 percent of their income is in credit card debt as they try to keep up.

To launch their kids into the middle class requires 16 years of schooling, and the 2005 family has to pay  for the first two years (preschool) and the last four years (college) themselves.

She also discusses how, compared to the 1970s, hospitals now send people home “quicker and sicker” (their phrase, she says) in order to control costs, and the family is shown how to and expected to care for, say, a post-surgery patient themselves. Which generally requires someone taking time off work.

And there is so much more on that video. It is a real eye-opener.

So today’s middle class is under terrific debt pressure. I think the effect is called a lower marginal propensity to consume. They get too many bills!

How is this related to the economy in general?

Gail Tverberg writes that a multiplicity of debt rests on a small base personal income. She writes: “It looks to me as though we are due for a debt unwind, and with it a rapid decline in the U.S. standard of living. Exactly what form it will take, and what the timing will be (for example, sudden one month from now or sudden three years from now, or gradual over a longer period), isn’t certain. I would expect that many (or most) other economies in the world will be dragged along in this debt unwind and will experience a decline in their standards of living.”

If Elizabeth Warren and Gail Tverberg are right, then it appears that an external shock to personal income would cause a ripple effect throughout the economy. Could this latest shock have been caused by the demand of a growing population pushing up against a finite resource, such as oil?

If so, we are facing an economic future of highs and lows where the lows become increasingly deeper and longer. We cannot afford to wait; we need to pay attention to the basics – food and energy!

We need to plan for the worse and hope for the best. We must utilize every advantage available to us as we transition away from imported energy.

It is not about us anymore – now it is about future generations.

We’ve been hearing that the American consumer is under pressure and that our economic system is a house of cards. Will Peak Oil come to be the straw that broke the camels back? Because of the resources we have available to us, I think that we in Hawai‘i have a very good future if we focus our attention on future generations.

There is a reason I am talking about all this right now. Check back here on Monday and I’ll tell you about Part 2.

President-Elect Obama

Barack Obama will be the next President of the United States. His message of inclusiveness is inspirational. And besides, he has a
solid, local boy bodysurfing form. We all know that he knows what he is doing.

As I write this on Tuesday night, John McCain is giving his
generous concession speech on TV. This feels like a historic moment!

The other big deal these last couple days is that our tomato
production has finally started to increase again.

We’ve done what we have to do to position ourselves for a future of lessening energy supplies and discretionary income. We need to be lean and mean and we’re getting there.

Not just our farm but our whole country needs to adjust and be prepared for a challenging future. But somehow the future looks, and feels, so much more hopeful than it did last week.

TMT – It’s Not About Us Anymore

Seeing the powerful play Kamau recently was gut wrenching, and very emotional for me.

I knew that it was my grandson Kapono up there, acting. But it wasn’t him. It was the character Alika. And it was me.

Sitting in the audience, I absolutely identified with the family losing the only home they knew. And the conflicts within one’s self – that is real, too.

I went through all that myself when I was younger. I had no direction. I flunked out of school and got drafted. I volunteered to become an officer and then went to Vietnam.

There, we were 100 people in an infantry company walking through the jungle. No one could easily come and help us if we needed. It was real – people were shooting and getting shot.

There was no room for feeling sorry for oneself; not even a little bit. You used every bit of skill and cleverness that you had, fought and took care of each other to survive.

As in the play, there was loyalty. Every single one of the people in our company in Vietnam absolutely knew and there was no doubt – not even a little – that leaving someone behind was not an option.

When I came back from Vietnam, I was a changed person. I had direction. I majored in accounting because I wanted to run some sort of business and I needed to keep score.

Now, everything is simple and very clear to me. It is not about us anymore – it is about the future generations. Leaving someone behind is still not an option. We live in the here and now and must use every bit of our skill and cleverness so that we can create the best environment for the following generations.

This is why I am for building the Thirty-Meter Telescope on Mauna Kea. If we concentrate on what we can develop for future generations, instead of wallowing in past mistakes, it can help us transition to a future of sustainability for the next generations.

Thinking about sustainability shapes everything I do. It’s why we do everything we can to make our farm energy-self-sufficient. It’s why we started the Adopt-A-Class program – to take care of our own. It’s why we are putting on the E Malama ‘Aina festival – so people know they are not alone.

All of our people’s stories were in that play. It really hit me hard.

Kilauea Volcano Eruption Photos, August 2008

Richard’s grandson Kapono Pa recently took these photos of Kilauea Volcano, which is erupting magnificently these days and dramatically fountaining its lava into the ocean near Kalapana.

Amazing photos, Kapono! Wow.

The pictures really speak for themselves.

Kalapana_3_4

Well, except for this next one. Do you see the face in the right hand photo?

Kalapana_7

 

Kalapana_11

He was down there at sunset, which is a powerful time to experience the eruption.

Kalapana_9

Kalapana_8

Kalapana

Kalapana_14

Kalapana_15

Very impressive. The eruption and the photographer both.

It’s Official: the Renewable Energy Farm Loan Bill

June and I were invited to the Governor’s office yesterday to witness the signing of Bill 2261, a renewable energy Farm Loan Bill which I helped shepherd through the legislature.

In her remarks, Governor Lingle pointed out that the goal for Hawaii is to be 70% fossil fuel free by 2030. She also mentioned working with contacts in Israel to see if there is a way we can take advantage of Israel’s effort to be 100% converted to electric vehicles in three years. These are two huge initiatives. I am glad we are doing this.

There were several bills being signed, and four of us were invited to speak.  David Murdock, President of Dole Corporation, complained that the bill to streamline the process for his 400 MW project on Lana‘i, although helpful, does not go far enough.

He wants the Governor to declare an emergency. He believes that the airlines are on the verge of bankruptcy, that very few people will be flying in the near future and that Hawai‘i’s future will be bleak if we don’t do something now.

I happen to believe he is right. Office of Hawaiian Affairs administrator Clyde Namau‘u writes in the July edition of the OHA newspaper Ka Wai Ola that we are bracing for a rough ride and that “grants to community organizations could also shrink.” The most defenseless among us will be the first to feel the effects of the wrenching downturn in the economy.

There is a heartbreaking letter to the editor in today’s Hawai‘i Tribune-Herald titled “What Is Happening?” Abigail Fojas writes: “I know a few single moms who were laid off, asking me if I know anyone who will hire them because they can’t make the rent next month, and unemployment won’t keep them in their homes. These women have like three kids and no husband. These are driven people who have worked most of their lives.”

But though I believe  Mr. Murdock is right, I just don’t see that people are ready to act, especially since the TV stations and the news media don’t even think the passage of these bills was newsworthy.

I was so busy thinking about my own speech that I did not hear the other two speakers. At the last minute I was mentally changing my speech around. I wanted to describe how this bill came to be, how Dwight Takamine’s dad Yoshito introduced it at the Farm Bureau convention and to talk a little bit about what Hamakua Springs is going to do. Next thing I knew I was up. This is what I said:

Thanks to the Legislature, Senate Ag Committee Chairperson Jill Tokuda and House Ag Committee Chairperson Clift Tsuji, who introduced the bill into their respective chambers and the Ag Committees of both Houses. Special thanks to Sandy Kunimoto, the Director of the Hawaii State Department of Agriculture, and especially the personnel in the Farm Loan Department, Dean Matsukawa and Mark Yamaki in particular. They were the ones who put the bill together.

This bill went through the entire process without one dissenting vote. I guess everyone likes to eat.

I was the only person from Hawai‘i who attended the Peak Oil conference in Houston this past October. It was clear that world oil supply was not able to keep up with demand. And it was clear that fuel prices were going to be rising with no end in sight.

Rising energy costs affect farmers very quickly. You can call farming the canary in the coal mine. Fertilizer, chemicals, irrigation, packing, cooling and transportation costs are all petroleum related.

Returning home, it was apparent that since we import most of our food, we need to do something to help farmers grow more food. The question was: “How will we feed Hawai‘i’s people?”

The answer is not complicated. “If the farmer makes money, the farmer will farm.”

This renewable energy farm bill is a Farm Loan Program that will allow Hawai‘i’s farmers to make low-cost loans for projects such as hydroelectric, solar, wind and bio fuels. This will help farmers big and small, on all islands, at all elevations, wet side-dry side, conventional/organic, high elevation and low. All farmers will benefit.

As an example of how this bill can benefit farmers, take our case. Hamakua Springs farms 600 acres of diversified crops, including bananas, and hydroponic vegetables such as tomatoes, Japanese cucumbers, green onions, lettuces as well as others. We are planning to do aquaculture soon. There are 80-something workers, together with three generations of us, who operate Hamakua Springs Country Farms.

Hamakua Springs is located in Pepe‘ekeo, 10 miles north of Hilo. As everyone knows, Hilo rains. One hundred forty inches of rain fall in an average year. We have three streams running through the property, as well as a flume that used to feed the sugar mill.

The renewable energy Farm Loan Bill will allow us to finance the borrowing of water from the flume in an 18-inch pipe, which we run downhill to a turbine that spins and makes electricity. We will then return the water that we are borrowing back to the flume.

Our monthly electric bill has gone from $9,000 a short time ago to $15,000 now. And there is no end in sight. But with this alternate energy farm bill, our monthly payments to make the hydroelectric plant will be less than half of the present electric bill.

After we install the hydroelectric project, we will have excess electricity. We are thinking of allowing our workers to plug their hybrid electric cars as an extra benefit for working for the farm. We are also thinking of using the banana waste to feed fish. We plan to take the ammonia from the fish waste, run it through a biofilter and send the usable fertilizer downstream to hydroponic vegetables. Then, we’ll pump the water back to the top with the excess electricity from our hydroelectric plant.

By temperature control we can fool plants into thinking its summer when it is winter. Chilling the plants in the summer will fool the plants into producing in the winter, when supplies are short. Small berries come to mind.

This is just one example. We could have hundreds of farmers taking advantage of this Farm Loan Program and implementing clever ideas we had no idea can be done.

Farmers are very resourceful and innovative people. This bill will help farmers grow more food. As we said before, “If the farmer can make money, the farmers will farm.

Help Hawai‘i’s farmers and feed Hawaii’s people. Buy local. We can do this!

I think it went over well. The governor said she liked that we’re proactive and many others told me that they liked the remarks as well.