Category Archives: Geothermal

Geothermal Working Group Report is Unveiled

January 4, 2012 Richard Ha

We know the era of cheap oil is over, and that it is only a matter of when and how high oil prices will rise.

What we need now is to see what we can do to enable geothermal. Two-thirds of our economy is made up of consumer spending, and stabilizing electricity prices will help our people cope.

From Hawaii Reporter:

Geothermal Working Group- Final Report unveiled by the County of Hawai‘i

REPORT FROM HAWAII COUNTY – HILO, HAWAII – The Geothermal Working Group, with the support of Hawai`i County Mayor Billy Kenoi, will present the final draft of the Geothermal Working Group Report on Wednesday, January 4, 2011 at 2:30 p.m. The press conference will be held at the County building on the Mayor’s lanai at 25 Aupuni St., second floor.

The report was sponsored by the County of Hawai‘i to evaluate geothermal energy as the primary source of baseload power for electricity on the Island of Hawai‘i. The report includes an analysis of technical data and expert testimony providing convincing rationale to develop local renewable energy plants and transition away from the county’s dependence on petroleum-fueled generators for baseload electricity. The report, which is currently being circulated within Hawai`i’s State Legislation, was developed as research to help support Hawai`i’s Clean Energy Initiative goals…. Read the rest

As I’ve talked about here before, Iceland has made itself energy and food secure. We can too.

Geothermal, Peak Oil

Democratic Party Resolution Supports Geothermal for Baseload Electrical Power

December 28, 2011 Richard Ha 1 Comment

The following is a resolution that the Hawaii County Democratic Party adopted at its 2011 County Convention. It recognizes the value of geothermal as an indigenous resource, and it recognizes that low cost is a relevant and important aspect that benefits society.

It also notes that the EPA has directed the HECO companies to retrofit its oil-fired plants to comply with emission standards. But that will cause oil-fired plants to stay in operation longer than desirable, and will result in higher cost to ratepayers.

Note especially this:

“NOW THEREFORE BE IT RESOLVED THAT the Hawai‘i County Committee of the Democratic Party of Hawai‘i hereby formally requests the 2012 Hawai‘i State Legislature to direct the Public Utilities Commission to require HELCO to develop a timely plan to retire its fully depreciated fossil fuel power generation facilities and accept geothermally generated electrical power as the primary baseload source. HELCO should continue to include other alternative energy sources – such as wind, solar and hydro – in its mix of sources, but geothermally generated electricity must become the primary baseload source for Hawai‘i Island within the next five years; and

FURTHER BE IT RESOLVED THAT the PUC should continue to implement contractual procedures between HELCO and geothermal power producers that represent an equitable return on investment but, as important, reduce the kilowatt hour cost to consumers whenever possible.”

The Resolution:

Requesting the 2012 Legislature to Mandate PUC to Require HELCO to Develop A Timely Action Plan To Retire All Depreciated Oil-Fired Power Plants on Hawai’i Island And Transition to Geothermally Generated Electricity As the Island’s Primary Baseload Power Source

WHEREAS, the Hawai‘i County Democratic Party adopted a resolution at its 2011 County Convention supporting the use of indigenous, renewable geothermal energy to generate baseload electrical power to (1) reduce dependency of imported fossil fuels, (2) reduce our carbon footprint and other environmental risks, and (3) hold the line or reduce electrical energy costs to consumers; and

WHEREAS, Puna Geothermal Venture has proven the safety and reliability of geothermally generated electrical power for Hawai‘i Island consumers for about 18 years; and

WHEREAS, this geothermal power has also generated royalty payments to the State and County of Hawai‘i and the Office of Hawaiian Affairs running in the millions of dollars over the past 18 years; and

WHEREAS, the Public Utilities Commission has in the past year initiated new contractual procedures between HELCO and PGV which are successfully reducing the kilowatt hour cost of geothermally generated power to consumers; and

WHEREAS, all but one of HELCO’s existing fossil fuel-dependent power generation facilities on Hawai‘i Island are fully depreciated but continue to be operated, which has destructive environmental and economic consequences, including forcing Hawai‘i Island consumers to pay the highest kilowatt hour charge in the state – a cost that will continue to increase as the global peak oil situation further drives up the cost of fossil fuel;

WHEREAS, the federal Environmental Protection Agency has recently directed all HEI companies including HELCO to retrofit existing oil fired plants to comply with EPA emission standards. This expensive undertaking will force continued usage of these plants and perpetuate a level of emissions and kilowatt hour costs that exceed that of geothermal. Also, this investment – which will inevitably be borne by consumers – should, instead, be dedicated to the transition to environmentally and economically preferred geothermal power production and/or distribution;

NOW THEREFORE BE IT RESOLVED THAT the Hawai‘i County Committee of the Democratic Party of Hawai‘i hereby formally requests the 2012 Hawai‘i State Legislature to direct the Public Utilities Commission to require HELCO to develop a timely plan to retire its fully depreciated fossil fuel power generation facilities and accept geothermally generated electrical power as the primary baseload source. HELCO should continue to include other alternative energy sources – such as wind, solar and hydro – in its mix of sources, but geothermally generated electricity must become the primary baseload source for Hawai‘i Island within the next five years; and

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Geothermal, Iceland

About the “Broken Economy that got out of Jail”

December 19, 2011 Richard Ha 1 Comment

This article about Iceland and its ongoing recovery from the financial crash of 2008 was written a month after Roald Marth and I visited Iceland in August 2011.

The Independent

Iceland: The broken economy that got out of jail

The small nation went bust spectacularly. But its recovery has been remarkable, too – and holds lessons for other countries. Ben Chu reports

Iceland experienced one of the most severe recessions in the world when the markets crashed in 2008. Economic output fell by about 12 per cent over two years. But the latest report on Iceland by the International Monetary Fund shows that growth is resuming. GDP is expected to increase by a relatively healthy 2.5 per cent in 2011. The Icelandic public finances are on a sustainable path too with government debt projected to fall to 80 per cent of GDP in 2016.

The turnaround should not be exaggerated. Iceland is still more than 10 per cent below pre-crisis output levels. Unemployment remains at about 6.7 per cent, considerably higher than before 2007. The standard of living of most Icelanders is well down. Access to foreign currency is tightly controlled. And risks to recovery remain. Central bank interest rates are going up in order to curb inflation. This could stifle growth. Yet the fact remains that the outlook for the Icelandic economy is looking rather healthier than other distressed economies in Europe such as Greece, Portugal and Ireland… Read the rest

Iceland experienced the biggest financial crash in modern history – yet they are now recovering. They are recovering because they inoculated themselves from high oil prices by using low cost hydro and geothermal for 100 percent of their electricity and house heating. And by utilizing low cost electricity, they made an electricity intensive aluminum export industry.

It is clear to me that had they used expensive biofuel to generate electricity, they would not be competitive in making aluminum for export. And instead of coming out of this disastrous financial situation, they would be facing years of depression. This is exactly why Hawai‘i should not be using expensive biofuels to make electricity when we have low-cost geothermal.

Here are my observations from that trip we took took to Iceland.

I want to conclude my “Iceland Series” by pointing out something very simple and straightforward that they have learned in Iceland and put into practice, but that we in Hawai‘i have not:

Cheap and proven technology, and clean energy projects, protect an economy from oil crises. Read the rest

Geothermal, Peak Oil, Renewable Energy Sources

Momentum Toward Geothermal Has Shifted

December 9, 2011 Richard Ha

It is clear that the momentum toward geothermal has shifted.

There have been numerous community meetings on the Big Island, where the overwhelming number of Hawaiians are in favor of geothermal if it is done in a pono way: It needs to be culturally sensitive and benefit the community, and before we implement geothermal, it must be shown that its use is environmentally benign.

People on the Big Island are very aware that geothermal electricity is much cheaper to produce than oil- or biofuel-generated electricity. They expect to see a difference on their electric bills.

This major change will be very challenging for the electric utility as it tries to translate geothermal production into lower electric bills. But they have the best people working for them; they are our friends and neighbors. Actually, they are us.

Not, no can. CAN!

Geothermal, Peak Oil, Renewable Energy Sources, Sustainability

We are at a Pivotal Moment & We Need to Make a Commitment

December 7, 2011 Richard Ha 4 Comments

I spoke at a plenary meeting for federal, state and private enterprise energy experts yesterday at the Honolulu Convention Center. It was put on by the Department of Business, Economic Development and Tourism. I want to share my speech here, too:

Aloha Everyone,

We farm 600 fee simple acres on the Big Island. I am the only person from Hawai‘i to have attended what is now four Peak Oil conferences. I went to the first conference so I could learn about oil, and figure out how to position our farm for the future.

I have an accounting degree. But, as a farmer, I would say our biggest strength is that we are good at adapting to change.

Here are some key observations:

1. The world has been using twice as much oil as it has been finding for more than 20 years. And that trend continues.

2. Economies run on energy. If you take a chainsaw and a gallon of gas, you will cut so many trees. If you take that chainsaw and a half gallon of gas, you will cut less. It’s the same for the world economy. Energy growth is tied to economic growth. If energy is not available in sufficient amounts, the economy cannot keep on growing.

3. “Energy Return on Energy Invested.” It is the net energy that is available for society to use that is important.

In 1930, to get 100 barrels of oil it took the energy of one barrel.

In 1970, to get 30 barrels took one barrel.

Now, it’s 10 or 15-1 and decreasing.

Oil shale and tar sands are in the 5-1 range.

Biofuels is less than 2-1.

But geothermal is at least 10-1, and will last for 500,000 years.

It is estimated that we need 4-1 just to maintain our present society.

The net energy that is available for the use of society is getting gets less and less. In order to stay even, we will need more and more of the low EROI stuff just to stay even. Using geothermal to make electricity costs only half as much as oil.

With the world in recession, the oil price is at $100 per barrel. It seems like we are at the edge of starting down the backside of the oil supply curve. As oil supply starts to decrease, the net energy available decreases too but at an increasing rate.

One may reasonably assume that we are facing permanent recession or worse.

Another way of looking at it is: Net energy minus the energy it takes to get our food equals our lifestyle.

What can we do? The Big Island will be over the hot spot for 500,000 to a million years. The EROI for geothermal is stable and will stay the same for 500,000 years.

Consumer spending is two-thirds of our economy. Affordable energy is key. Let’s all work together to find the solution that works for the community, the environment and the economy.

Iceland is energy- and food-secure. They became that way by using low-cost hydroelectric and geothermal energy. They use their cheap electricity to make aluminum, and with the hard currency from that, they buy the food that they cannot grow. It can be done, but we must force the change!

At the early ASPO conferences, EROI used to be “fringe” thought, and now it is mainstream. We need to consider this in our planning!

We are at a pivotal moment in Hawai‘i’s history. Business as usual is no longer safe. Like the ancient leaders who made the decision to send the canoes up from the south, we are about to make decisions that will decide the future for coming generations.

We here in this room will make the commitment. If not now, when? If not here, where? If not us, who?

We can do this. Not, no can. CAN!

Geothermal, Peak Oil

2011 Peak Oil Conference, Part 4: The Answer is Geothermal

November 9, 2011 Richard Ha

“Find three solutions to every problem, and then find one more just in case.”

The time for endless debate is over. We need action.

We know that it is becoming increasingly difficult to increase world oil supplies. There is no point in discussing, to a fine point, when Peak Oil will happen. It is more important to know the consequence of not being able to keep up with demand.

The consequence is rising prices. We have seen that when oil prices exceed $100 per barrel, the world economy starts grinding to a halt. But oil is already at $90+ per barrel, and the world is in a slow growth period. Could the “new normal” be slow or no growth?

How much time do we have? Just today we hear that Israel is considering bombing Iran. And business commentators are now looking beyond Greece to Italy. But Italy is too large for Germany and France to save. If the EU unravels, the consequence for the world economy is not pretty. So how much time do we have? I would say, “Not much.”

We need to look hard and find that extra solution to our problem. We need a solution that strengthens the aloha spirit and is proven technology, low cost, stable and an economic driver. Our solution needs to create no emissions and be large enough to make a real difference.

The answer is geothermal. But our electric utility is operating with one hand tied behind its back. It has a fiduciary duty to its shareholders, which prevents it from finding that one solution that solves all our problems.

We need to untie the utility’s hands.

Read the rest of this series on the 2011 Peak Oil Conference:

Part 1

Part 2

Part 3

Biofuel, Geothermal, Peak Oil

2011 Peak Oil Conference, Part 1: As the ASPO Conference Gears Up

November 2, 2011 Richard Ha

Some thoughts as the Association for the Study of Peak Oil (ASPO) conference is about to start here in Washington, D.C.:

The bad news

We are using twice as much oil as we have been finding for the last 20-30 years. And we are getting closer to the intersection of increasing world population and a finite resource.

Shale gas – 70 percent of the gas that comes from a gas well is used up in the first year. We do not have close to a 100 year supply. Lucky if we have 25 years’ worth.

Biofuels – The EPA had to revise its 2011 estimate of U.S. cellulosic biofuels downward from 250 million gallons to 6.5 million gallons. Also, the net energy derived from producing biofuels is very low.

The U.S. mainland has a liquid fuel transportation problem. Hawai‘i has both a liquid fuel transportation problem as well as a liquid fuel electricity problem.

The good news

Compared to the rest of the world’s population of 7 billion people, the 2 million people of Iceland and Hawai‘i have the best geothermal resource in the world.

The Big Island will be over the “hot spot” for 500,000 to 1 million years.

Geothermal costs around 10 cents per kWh to produce electricity. Oil, at $100 per barrel, costs more than 20 cents/kWh. Geothermal energy cost will stay stable for 500,000 years while oil will rise to unaffordable levels soon.

Like our ancient people a long time ago, we must make decisions for future generations. Can we continue to wait and hope for the best, or do we force change?

Let’s go!

Go to Part 2 of this series.

Geothermal, Renewable Energy Sources

Mark Glick is New Head of DBEDT’s Energy Division

October 19, 2011 Richard Ha 1 Comment

Jeff Rubin, former Chief Economist for CIBC Bank of Canada, says it’s not about oil supply, but it is more about oil we can afford to burn. I like him because his reasoning makes common sense. If we cannot afford the renewable energy solution, what is the point?

Mark Glick was just appointed head of the Energy Division of the Department of Business, Economic Development and Tourism. Back when I was supporting the Thirty-Meter Telescope, Mark was President of the Sierra Club, and I had an issue with them.

I pointed out that the Sierra Club is anti-Hawaiian in carrying out its policies. I made clear that I was not against the people who belonged to the Sierra Club – I was a member, and the folks were my friends. I just called its policy anti-Hawaiian.

By all indications, Mark is very well-qualified for his new position. But he needs to keep in mind that when choosing renewable alternatives, people have to be able to afford it. The Energy Department’s policies will have a huge effect on Hawai‘i’s economy. Some people, like me, believe it will have the largest effect.

It’s the folks on the lowest rungs of the economic ladder that get their lights turned off first. Too often, they will be Hawaiians.

Energy policy must balance distributed generation, so we do not end up with the “haves” leaving the grid, and the “have nots” and small businesses being left to pay for the grid.

If we use proven-technology, indigenous, low-cost energy – such as geothermal – we will become more competitive with the rest of the world. This will stimulate economic activity.

Hawaii is blessed with abundant natural energy resources. We must maximize our resources. But we also need to prioritize wisely.

Choosing low-cost energy will benefit everyone; not only the rubbah slippah folks.

Geothermal, Peak Oil, Renewable Energy Sources

Talk: On HECO, ‘Time is Running Short’

October 14, 2011 Richard Ha

Yesterday I gave a talk at the Sheraton Outrigger in Keauhou. The talk was for the Water Works Association of Hawaii, which is the umbrella association of all of Hawai‘i’s water departments.

The Water Works Association meeting agenda.

I started off by describing all the different hats I wear: Farmer; Co-Chair of the Geothermal Working Group, and Chairman of the Board of Ku‘oko‘a.

I talked about the Hawaiian Electric Company (HECO) operating with one hand tied behind its back. HECO has a fiduciary duty to its shareholders and so it cannot do all the things it might want to do to help Hawai‘i’s people. For instance, it would have a difficult time lowering Hawai‘i’s electricity rates – by closing its oil-fired plants and bringing on significant amounts of geothermal – without hurting its shareholders’ stock price.

HECO is under much pressure lately. Ku‘oko‘a wants to untie HECO’s hand so it can be the utility all its people want it to be. We don’t want to take HECO over; we want to empower HECO for the benefit of Hawai‘i’s people.

The main point I tried to make in my talk was that time is getting short. And that there is more than enough evidence to show that oil prices will rise in the future. It is not about whether or not one particular theory is right or wrong. The evidence we see all around us is compelling enough.

The reason I know about this is that I have attended three Peak Oil Conferences, and this subject has been on my radar for more than five years now.

We know that the peak of oil discovery was in the 1960s. For the last 20 years, we have been using twice as much oil as we have been finding.

We also know that all oil fields decline eventually. In fact, the natural decline rate of all the oil fields put together requires us to find a Saudi Arabia every two to three years. Clearly we have not been doing this.

Oil exporting countries will use more and more of their own oil. This means less for the rest of us. They must do this, in order to keep their people happy, or the dictators will get thrown out of office.

China and India use much less oil per person than we do, yet their economies keep on growing. The Honolulu Star-Advertiser points out that our electricity rates are approaching the high point of 2008. Our people are suffering, and yet China and India can pay this oil price while their economies keep growing.

And we have not even passed the peak of oil supply. Trying to be safe by doing nothing is no longer safe. We need to think different.

More on all this in my recent editorials for Civil Beat.

Geothermal, History, Lowering Electric Rates

Kuokoa Board Member James Woolsey

September 19, 2011 Richard Ha

James Woolsey, former director of the Central Intelligence Agency and a board member of Ku‘oko‘a, was in Hawai‘i recently to deliver the keynote address at the Asia Pacific Clean Energy Expo and Summit in Honolulu.

His keynote speech is here; forward ahead to 37:00 to hear it.

A recent Civil Beat article starts:

Hawaii needs to take decisive action in moving away from its dependence on foreign oil and capturing local renewable energy sources to power its energy needs, according to James Woolsey, former CIA director under President Bill Clinton and board member of Kuokoa, the local start-up company that wants to take over Hawaiian Electric Co.

“This will not work, this moving Hawaii into a position of leadership and saving Hawaii from its terrible energy dependence — it will not work without decisive action,” said Woolsey. “One can’t halfway do it.” Read the rest

Though he delivers a very sobering message, Jim also has a great sense of humor. While here he also spoke in Kona, and during that Q&A session, he turned his back, unbuttoned his long-sleeve dress shirt, and untucked it. Then he turned back around to face the audience to reveal his t-shirt.

His t-shirt shows a cartoon figure with a gas nozzle in one ear, which is blowing his brains out the other ear. The audience screamed laughing.

Also while he was here, we took the opportunity to make sure he became culturally familiar with who the Hawaiian people are, and how much importance we at Ku‘oko‘a place on all our people having a good cultural grounding in how the people think.

Greg Chun, president of Kamehameha Investment Group and an expert on the Keauhou/Kona area, met us at Keauhou to give us an orientation.

Left to right: Ku‘oko‘a Board Member Noe Kalipi; daughter-in-law of Jacqui Hoover; Board Member Jim Woolsey; Jacqui Hoover, President of the Hawai‘i Island Economic Development Board; Kamehameha Schools’ Greg Chun, and Ku‘oko‘a President Ted Peck.

We went up on roof of the Keauhou Outrigger, because from there Jim could see a paranomic view of Keauhou – from the bay to the heiaus and to the hillsides, large expanses that were formerly terraced and planted and which supported many people in pre-contact Hawai‘i.

We have had a lot of conversations with Jim about these things we are so grounded in, but to actually see it all and walk it is different than just talking about it. We walked to the heiaus, and out to the ocean.

Before Jim was a lawyer and high up in government, he studied history. So he knows a lot about civilizations and this was not foreign to him; he understood it immediately. He gets it.

Noe Kalipi, Ted Peck, June and I had a very fun dinner with him the night before his speech. He is a really good guy!

He sees that Hawai‘i is a place where you can scale technology to demonstrate that these things can be done. His whole idea is that we can do this here in Hawai‘i.

He’s like us: We are all committed to making this happen. It’s not an “if.” We must do this.