Eat Local; Everybody Else Is

We are noticing a strong trend here in Hawai‘i toward people preferring and supporting local food products.

A recent survey from the National Restaurant Association supports this trend nationwide. It’s from the national produce newspaper The Packer.

Local produce near the top of hot menu trends

05/24/2011 / Bruce Blythe

Attendance at the National Restaurant Association’s annual Chicago show May 21-24 appeared to be comparable, and possibly higher, than last year, association representatives say.

Local is the way to go in 2011, so say many of the nation’s chefs.

Based on the National Restaurant Association’s annual What’s Hot survey, locally sourced meats and seafood and locally grown produce ranked No. 1 and No. 2, respectively, among the top 20 industry menu trends….

Read the rest

Mopping the Deck of the Titanic

In October 2008, the Hawai‘i Clean Energy Initiative (HCEI) – which aims for 70 percent of the State’s energy needs to be met by renewable energy by 2030 – was outstanding for its ambitious approach to the challenges facing Hawai‘i’s future. It anticipates a 30 percent reduction in oil dependency through efficiency improvements, plus a 2 percent/year reduction in fossil fuels over 20 years.

Now we are realizing that 40 percent less oil dependency in 20 years is not ambitious enough. And as we move to implementation, we are finding that some of our assumptions may not work out as planned. A key question is whether or not we are flexible enough to react to the rapid changes taking place.

It is clear to me that we are furiously sweeping and mopping the deck of the Titanic.

Picture 7

 

 

 

 

 

 

 

 

The Hawai‘i Clean Energy Initiative was enacted into law in April 2010. But by then, the world oil supply situation was changing rapidly. Two months later, Lloyd’s of London advised its business clients to be prepared for $200/barrel oil by the year 2013. Economists at the University of Hawai‘i Economic Research Organization told me that $200/barrel oil would devastate our tourist industry.

I asked, “Is it fair to say that if we used geothermal as our primary base power, Hawai‘i would become relatively more competitive to the rest of the world as the price of oil rises?” The answer was “yes.”

In a report last week, the Economic Research Organization at the University of Hawai‘I (UHERO) pointed out that the State’s current weak recovery is being fueled by the tourism industry—which is dependent on future oil prices.

Hawaii has liquid fuel, transportation and electricity problems. The mainland fixed its liquid fuel electricity problem, after the oil shocks of the 1970s, by switching to natural gas and coal.

This past October, when I attended a Peak Oil conference in Washington D.C., they pointed out that the U.S. mainland is less than 9 percent dependent on petroleum oil. A large part of that 9 percent, they then said, was due to the Hawaiian Electric Company (HECO) in Hawai‘i. I was shocked!

To think that we have done nothing about this for the last 20 years. And now we hear the excuse that, since nothing has been done, it will take 10 years to ramp up geothermal, so we cannot wait for geothermal.

Here is a comparison of Energy Return on Investment (EROI) for fossil fuels: In the 1930s, to get 100 barrels of oil, it took the energy of just one barrel. In the 1970s, one barrel would get you 30 barrels. Now, the average EROI is that one barrel will get you 10. Clearly, the trend is not good.

The ratio for geothermal is also around 10 to 1. The difference, though, is that this ratio will not decline for a very long time. Jim Kauahikaua, Scientist-in-Charge of the Hawaii Volcano Observatory, told me that the Big Island will be over the hot spot for 500,000 to a million years.

Instead of fossil fuel, HECO wants to use biofuels to generate the electricity for most of its base power. The problem is that the EROI for biofuels is close to 1 to 1. And it should also be a warning that SunFuels, a company that actually knows about green diesel, is closing up shop in Hawai‘i. Not to mention that farmers knew three years ago that they would not grow biofuels, because it was obviously a money loser for them.

I am not against biofuels, but I think if we are to grow liquid fuel it should be used for jet fuel or transportation fuel—not electricity. I support biofuels through Pacific Bioldiesel. These folks use waste oil to support their capital costs. To the extent they can integrate feedstock from farmers, I think that their model has a reasonable chance of success. I also support UH Hilo’s College of Agriculture and Forestry’s initiative to study palm oil cultivation. This, too, is proven technology.

Geothermal is cheap, proven, gives off no carbon emissions and occupies a very small footprint. And through the generation of NH3 from its off peak power, which can fuel internal combustion engines, geothermal can put future generations into a position so they can win.

NH3 can also help with food security. Eighty percent of NH3’s present use is as fertilizer.

Furthermore, electricity generated from geothermal to power electric cars is clean and cheap.

So geothermal both takes care of us today and can take care of future generations. To farmers, this is not rocket science. It’s just common sense.

We can and must use every renewable energy option available to us, and to its maximum potential. By diverting excess electricity production to alternatives such as NH3 (ammonia), geothermal offers a safety valve that can allow more renewable energy in.

Can we imagine prosperity, instead of doom and gloom? Not, no can. CAN!

The Hawaii Clean Energy Initiative:

On October 20, 2008, an Energy Agreement was signed by the State of Hawai’i, the Hawaiian Electric Companies, and the State Consumer Advocate to accelerate the accomplishment of Hawai’i’s energy objectives in the regulated electric utility sector.

In April, 2010, the Hawaii Clean Energy Initiative Program was added to State law, in Chapter 196 of the Hawaii Revised Statutes.

The Challenge

Hawai’i relies on imported petroleum for nearly 90% of its primary energy

Up to $7 billion flows out of the state annually to meet Hawai’i’s energy needs

Hawai’i’s economy is extremely vulnerable to fluctuations in global oil prices

Hawai’i residents pay among the nation’s highest prices for electricity and fuel

The Solution

The Hawai’i Clean Energy Initiative is helping transform Hawai’i from the most fossil-fuel dependent state in the nation to one run on Hawai’i Powered clean energy within a generation

Its goals and objectives:

Hawaii is the most fossil fuel dependent state in the nation.

This can be explained in large part because of our dependence on tourism and the military – together, they make up roughly 50% of our total economy. That’s a dangerous scenario for the future because of the finite nature of fossil fuel and the fact that our state is more and more vulnerable to fluctuations in oil prices and availability.

A Matter of Leadership

It’s a matter of leadership.

Geothermal – We have it. It works. It’s cheap. It’s safe. It’s a gift. Let’s go!

It’s ironic that Third World countries are moving into geothermal so quickly, while Hawai‘i is moving backward fast, by using biofuels to make electricity.

  • The Great Rift Valley, an area of Eastern Africa with strong tectonic activity, offers immense potential for large-scale geothermal projects. Some estimates put the resource potential along the rift at 15,000 MW.
  • Today, Nicaragua produces electric power by burning oil and coal. Tomorrow (or, at least in the not-too-distant future), the small Central American nation intends to tap the chain of volcanoes it sits above as a source of geothermal energy.
  • In the Philippines, geothermal energy already provides 27 percent of the country’s total electricity production generated in power plants. Geothermal power plants are on the islands Luzon, Negros, Mindanao and Leyte.
  • Ormoc City, a city on the island of Leyte, has a population of 184,000 and produces 708 MW of geothermal. Here on the Big Island, where we have a very similar population (185,000), we only produce 30 MW.

Let’s go!

HECO on County of Hawaii & Aina Koa Pono

HECO is protesting the right of the County of Hawai‘i to participate in the start-up biofuel company Aina Koa Pono’s contract before the PUC.

BEFORE THE PUBLIC UTILITIES COMMISSION  OF THE STATE OF HAWAI’I 

In the Matter of the Application of  HAWAII ELECTRIC LIGHT COMPANY, INC.  HAWAIIAN ELECTRIC COMPANY, INC.  MAUI ELECTRIC COMPANY, LIMITED 

For Approval of the Biodiesel Supply  Contract with Aina Koa Pono-Ka’u LLC and  for Approval to Establish a Biofijel Surcharge  Provision and to Include the Biodiesel Supply  Contract Costs in the Companies’ Respective  Biofuel Surcharge Provision and Energy Cost  Adjustment Clause. 

Docket No. 2011-0005  HAWAII ELECTRIC LIGHT COMPANY, INC.’S,  HAWAIIAN ELECTRIC COMPANY, INC.’S AND  MAUI ELECTRIC COMPANY, LIMITED’S  MEMORANDUM IN OPPOSITION TO COUNTY OF HAWAII”S  MOTION TO PARTICIPATE WITHOUT INTERVENTION…

Read the rest here

First, HECO wanted to keep the details secret. Now it’s saying that the County is late, so it should not participate.

What about the County’s responsibility to look after the best interests of the people? That should count for a lot.

HECO says that the County has not stated the specific type of expertise, knowledge or experience it holds, now how it relates to the issues on this docket.

How about common sense?

The problem with this contract is that HECO is allowing Aina Koa Pono (AKP) to pass on its costs, over and above the oil cost it replaces, to the rate payer.

Sun Fuels, the most experienced company in Hawai‘i in terms of biofuel to liquid, has closed its Hawaii company because it does not think it can be competitive with diesel. One of the main issues is the company does not feel the process is scalable in Hawai‘i.

Sun Fuels’ principal, Michael Saalfeld, a Waimea resident, has actually put this process into production via a company he owns in Germany. He knows how this process works.  There is no one in Hawai‘i more experienced.

So we have the most knowledgeable company in the state closing up shop because it knows it’s uneconomical to do biomass to liquid fuel here – while the company with no experience in the field gets a contract allowing it to pass on its costs of operation to Hawai‘i’s people.

AKP has settled on a Napier grass feedstock after proposing all kinds of others, which left people with the impression that they were like drunken sailors bouncing off the walls.

And HECO is protesting Hawai‘i County’s right to participate?

What is up here?

Tomato Tomato Tomato, & More

June and I went to the Leeward Community College culinary gala L’Ulu this past Saturday night. It was a fundraiser for the college’s culinary students, and each chef was paired with a farmer. We were paired with Chef Alan Wong.

Alan and june

Here’s Chef Alan, making sure his farmer is properly supplied with a glass of Reisling, and below, June stands with a display of Hamakua Springs tomatoes.

Hamakua springs display

Chef Alans crew making tomato 3 ways

Chef Alan selected “Tomato, Tomato, Tomato” as the dish he would prepare for samples. That is a two-colored, cold tomato soup made from yellow and red tomatoes. In the center is a scoop of tomato sorbet with li hing mui dressing. On the side are two roasted grape tomatoes – one red and one yellow. The taste combination is incredible.

Tomato tomato tomato

His “Tomato, Tomato, Tomato” recipe can be found in his new, award-winning cookbook The Blue Tomato. Read about the cookbook’s recent Ka Palapala Po’okela award.

Nishimoto

This woman, Mrs. Ishimoto, told us she was a great fan of Hamakua Springs tomatoes. It turned out she is the grandmother of Brian Clay, the Olympic athlete. We were thrilled to meet her even before we found that out.

June and I enjoyed talking to the people there. We felt the strongest sentiment of supporting local farmers that we ever have anywhere.

We Are Confident In Our Food Safety Procedures

Someone reports finding a slug on lettuce he bought that had our label on it. He says he bought it on Sunday at the Pahoa Farmers Market.

But we do not sell our lettuce at the Pahoa Farmers Market, and do not have vendors selling our product at any Farmers Markets. Apparently, and unknown to us, someone must have bought our lettuce and resold it. We did not have control over that lettuce. It could have been contaminated when out of our control. It’s also possible someone packed other lettuce into our container/label. There’s no way to know.

We only sell our products at Farmers Markets ourselves. If you see our product at a Farmers Market, come up and say hi. We’ll say hi and introduce ourselves, and you’ll be talking to me and/or members of my family.

For many years now we have been very proactive about slugs and slug-borne diseases. I have written about this here before.

We do not grow our lettuce in dirt. Instead, we grow our lettuce on floating rafts. The lettuce roots gets their nutrients straight from the water. This helps us to maintain a barrier from slugs.

We were the first company in the state to be third-party Food Safety Certified. We could have been satisfied with that, and just relied on our food safety certification (which is voluntary, and adds a lot of labor and cost to our operation, but is important to us). But we are serious about doing everything we can to protect our customers, so we took it one step further.

Although there haven’t been any cases of the slug-borne “rat lungworm disease” reported in Pepe‘ekeo, where our farm is located, we voluntarily instituted a program to cut the potential lifecycle of the rat lungworm (the carrier of the rat lungworm disease).

Because the disease lifecycle requires the rat lungworm to live part of its life in a slug and part in a rat, we developed a program of slug baiting and rat baiting/trapping to make sure that the cycle was cut. So on our farm, even if a slug got by us, the chance of it being infested with the disease is unlikely.

We sympathize with the person who found a slug, but we have carefully doublechecked our procedures and are confident they are working as planned.

I don’t blame him for feeling frustrated. But the world is changing and we need to be thinking of how we will help each other face the uncertain future together. We need to make strornger communities, we need to make more friends and we need to stay closer to our families. In an uncertain future, it will be the aloha spirit that will help us cope with an uncertain tomorrow.

‘Crazy Economics’ of Oil/Gasoline Explained By Howard Dicus

Oil pricing is affected by many factors, but it’s important to be mindful of long term trends. Such as what I keep reminding you of here: That for the last 20-30 years, the world has been using twice as much oil as it has been finding. Just to keep up with the normal oil decline rate, we would need to find a Saudi Arabia every two-and-a-half years.

Hawaii News Now writer Howard Dicus wrote a very informative blog piece, about what causes oil prices to rise and fall, called The Crazy Economics of Crude Oil and Gasoline

The price of crude oil crashed today for reasons so complex and crazy it will surely reinforce your view that mankind has invented markets too complicated to manage.

…As a regular consumer, your encounter with energy prices is pretty straightforward:

  • When you need gasoline, you pay for it on the spot, then you get to use it.
  • When you need electricity, you get to use it, then you have to pay for it a few weeks later.
  • When you buy anything else, you know energy costs are usually buried inside the price.

When crude oil is bought and sold on commodity markets, there is a spot market to buy oil on the spot, but most oil is traded through contracts to deliver oil on a specific date in the future…..

Read the rest here

We are happy to see a decline in oil prices, but like I said, we need to be mindful.

Merrie Monarch 2011

Hilo just finished hosting hula dancers and admirers from around the world at its annual Merrie Monarch hula festival.

It’s so great to see how Hilo comes alive for that Merrie Monarch week, which is held each year around Easter. The streets overflow with people, many of them Hawaiian, in their designer aloha wear, flower leis and lauhala hats. Everything that is good about the place — the people, the leis, the music, the dancing — is magnified and multiplied. It’s everywhere. It’s wonderful.

From Wikipedia:

The Merrie Monarch Festival is a week-long cultural festival that takes place annually in Hilo, Hawaii. It honors King David Kalākaua, who was called the “Merrie Monarch” for his patronage of the arts. He is credited with restoring many Hawaiian cultural traditions during his reign, including the hula. Many hālau hula (schools), including some from the U.S. mainland and Japan, attend the festival each year to participate in the festival exhibitions and competitions, which are considered the most prestigious of all hula contests. Read the rest

The hula always starts on Wednesday, with a free Ho‘ike (demonstration) night. Watch this year’s Ho‘ike highlights from Big Island Video News here, and some of Halau O Kekuhi’s dances from that night here. They are renowned, and what a treat to see them.

Some other videos from this year’s Merrie Monarch:

This is Halau Hula O Kahikilaulani, of Hilo (It’s their kahiko performance)

Chinky Mahoe’s Kawaili‘ula, from Kailua, O‘ahu (kahiko)

And there’s always a wonderful Merrie Monarch Parade through Hilo town. See some of that here: 2011 Merrie Monarch Festival Grand Parade

It’s never too soon to start thinking about attending Merrie Monarch the next year, if you’re interested. Mark your calendars: tickets are available to purchase by mail only, and your ticket requests must be postmarked on December 26 or later. (If they are mailed later, you might not get seats; it’s best if you email your request on 12/26 exactly.)

Ticketing info is not yet updated for the 2012 festival, but watch this space later in the year if you’re interested in knowing exactly how to order.

Food Cost Inflation, and a Solution

The current disturbance in the Middle East has its origins in rising unemployment and food costs.

Here’s The Real Cost Of Food Inflation In America

Global Macro Monitor | Feb. 2, 2011, 5:50 AM 
Take a look at the chart we’ve constructed from the Bureau of Labor and Statistics 2009 Consumer Expenditure Survey.  It conveys a sense of how Egypt’s poverty combined with the sharp rise in food prices sparked the political revolt against the Mubarek government.  Read more

We are not immune from these pressures here. Just because food and fuel are stripped from general inflation rates does not mean they have no effect. The rubbah slippah folks all know this.

  • Can we lower food costs and increase employment in Hawai‘i?
  • Can we have prosperity in the face of declining world oil supplies?
  • Do we dare think outside of our individual spheres?
  • Can we have a uniquely Hawaiian solution to the world situation?
  • Can we imagine Hawaiian society where giving is more important than receiving?

My pop always used to say: “There are a thousand reason why ‘No can.’ I am looking for the one reason why CAN!”

Using geothermal as a base, we can have proven technology and low-priced, stable, clean electricity.

Not “no can.” CAN!!

‘Train Wreck In Very Slow Motion’

Jeremy Grantham, Chief Investment Officer of GMO Capital, gets it! He would be appalled that Hawai‘i, in the middle of the ocean, seems to feel no vulnerability.

For 20 to 30 years, the world has been using twice as much oil as it’s been finding. The world has fundamentally changed and soon we will pay dearly. Hawai‘i is very vulnerable.

One idea for a solution is biofuels, but that is about feed stock, which involves farmers farming –- and farmers won’t do it for the low payment that is expected.

“Base power” is potentially 85 percent of electricity’s cost, and so we need to concentrate on “base power” in order to get bang for our buck.

Geothermal is a cheap, stable, proven technology “base power.” We need to maximize geothermal for the benefit of all our people, or we will have wasted a valuable resource.

Farmers and other “rubbah slippah folks” clearly understand this. They know that the folks on the lowest rungs of the economic ladder get their lights turned off first.

They also know that folks with money will leave the grid if electricity rates go too high, leaving the rest to pay more.

We should not choose an energy policy that separates us into the “haves” and the “have nots.”

Jeremy Grantham is the Chief Investment Officer of GMO Capital (with over $106 billion in assets under management). He is one of the world’s largest asset managers and articulates the same themes that have been debated on The Oil Drum for the past 6 years.

In his Fall 2008 GMO newsletter, he commented on the underlying causes of the world credit crisis that had just taken place. This article is significant for its content and especially because of who is saying it:

“I ask myself, ‘Why is it that several dozen people saw this crisis coming for years?’ I described it as being like watching a train wreck in very slow motion. It seemed so inevitable and so merciless, and yet the bosses of Merrill Lynch and Citi and even [U.S. Treasury Secretary] Hank Paulson and [Fed Chairman Ben] Bernanke — none of them seemed to see it coming.

I have a theory that people who find themselves running major-league companies are real organization-management types who focus on what they are doing this quarter or this annual budget. They are somewhat impatient, and focused on the present. Seeing these things requires more people with a historical perspective who are more thoughtful and more right-brained — but we end up with an army of left-brained immediate doers (emphasis added).

 So it’s more or less guaranteed that every time we get an outlying, obscure event that has never happened before in history, they are always going to miss it. And the three or four-dozen-odd characters screaming about it are always going to be ignored. . . .

So we kept putting organization people — people who can influence and persuade and cajole — into top jobs that once-in-a-blue-moon take great creativity and historical insight. But they don’t have those skills….”

Read the rest here