Tag Archives: Iceland

2011: The Year in Review

January 2, 2012 Richard Ha 1 Comment

What a year it’s been! Here are some 2011 highlights:

There was a lot of conversation, of course, about geothermal. The Geothermal Working Group Interim Report – which provided lawmakers with an evaluation of using the hot water reservoir in certain locations of Big Island to provide local and renewable energy for electricity and transportation – was distributed to state legislators. I also wrote about it being a matter of leadership, about mopping the deck of the Titanic, and about how the momentum toward geothermal has shifted. Also about a Democratic Party Resolution supporting geothermal for baseload electrical power.

I attended a geothermal energy forum in Pahoa, with Hawaiian leaders speaking and every seat taken. There were more Hawaiian perspectives in supporting geothermal, this time in Hilo. And about even more Big Island support for geothermal.

I posted a link to the cloudcam, a time-lapse video taken by the Canada France Hawaii telescope’s cloud cam at night, which I thought was really neat. It’s time-lapse photography where you can watch the stars migrate across the night sky.

June and I enjoyed meeting and talking with visionary Earl Bakken at his Kiloho Bay home, and learning about his manifesto.

We participated in Alan Wong’s Farmers Series dinner for a second time, and really enjoyed it.

People seemed to enjoy the conclusion of my Maku‘u Series. I got a lot of great feedback on it. It was fun remembering the old days and the old ways of my Kamahele ‘ohana in Maku‘u.

I wrote about biofuels, and the very real problems with them. Also on biofuels and feedstock. I wrote a post about the National Research Council calling biofuels costly and their impacts questionable.

I spoke to the Kamehameha Schools First Nation Fellows about food sustainability, showed them the farm and gave them some of the best advice I could think of.

Of course I mentioned a few times about how “If the farmers make money, farmers will farm.” That link is to one of those times.

In June, seven Polynesian-style voyaging waka (canoes), representing different Pacific Islands, arrived in Hilo Bay after a two-month voyage from Aotearoa (New Zealand).

Leslie Lang, my blog editor, went for a spin around the bay on one, and we wrote about how the ancient ways are again showing us the way.

“It’s all about taking the knowledge and wisdom of the past and using it in the present to make a stronger future. It’s exactly what the old Polynesians did when they sailed out into the Pacific to find new land.”

It’s a strong metaphor. I wrote my impressions of the vaka here.

More vaka posts: The Canoes are Coming: Te Mana o Te Moana, They’re Here! and What’s the Big Deal about Voyaging Canoes?

In July, CEO of Ku‘oko‘a Ro Marth and I went to Iceland, in order to see for ourselves how Iceland went from being a developing country in the 1970s to one of the most productive countries in the world today. (Here’s a hint: GEOTHERMAL.)

Read about our very interesting trip (I wore shorts) at Heading to Iceland, Heading to Iceland 2, Power Plant Earth and Iceland, In Conclusion.

The online news organization Civil Beat published my three-part series on energy and food security in September.

And I attended my fourth Peak Oil conference, this one in Washington, D.C. I wrote about it here: Part 1: As the ASPO Conference Gears Up, Part 2: Impressions from the Conference, Part 3: Energy Return on Energy Invested and Part 4: The Answer is Geothermal.

It has been a busy, productive and interesting year, and I look forward to having another of the same. My best wishes to everybody out there reading for a happy, healthy and successful 2012!

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, 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!

Peak Oil

2011 Peak Oil Conference, Part 2: Impressions From the Conference

November 4, 2011 Richard Ha

This is my fourth Association for the Study of Peak Oil conference. Here are some highlights and some of my impressions:

Robert Hirsch pointed out that what we have is a liquid fuel problem, not an energy problem. Sixty percent of the world oil supply comes from a few giant oilfields. And giant oilfields decline naturally. The problem is that we have been using twice as much oil as we have been finding for 20 to 30 years.

There is some near-term potential: gas to liquids, coal to liquids, heavy oil refining, enhanced oil recovery and energy efficiency. He points out that in the long term we must implement much more electricity use. Robert Hirsch always makes common sense to me. His book The Impending World Energy Mess is well worth reading.

Robert Rapier pointed out that the U.S. uses 23 barrels of oil per person per year, while China uses only two barrels per person. At present oil prices, China’s economy is growing while ours is barely staying above water.

This is a zero sum game – they want to improve their standard of living, and we cannot afford to pay more, so our per barrel use must shrink. It looks to me that the Chinese cannot wait to jump into their cars and drive to McDonalds. I’m thinking, too, that we in Hawai‘i should be trying to implement lower cost energy as a top priority as we move toward renewables. Like geothermal?

Jeff Rubin: Two thirds of our economy is consumer spending. Peak Oil is not about how much oil there is, it’s about how much we can afford to pay for it. To grow the economy, we need cheaper oil. Market clearing prices do not seem to be compatible with economic growth.Transporting goods uses liquid fuels and the longer the distance the more the cost. Debt means borrowing on our future. We have done a lot of that. I wonder, will there be growth so we can pay it back?

There are links to both Jeff Rubin’s and Robert Rapier’s blogs in our sidebar, at right.

From the first ASPO conference that I attended, in Houston in 2007, it was immediately apparent to me that we needed to implement geothermal sooner rather than later.

I also learned a lot on the trip to Iceland that Ro Marth and I took. Iceland had the biggest economic collapse in the history of the world. The banks had been privatized a few years earlier and they just went crazy lending money to anyone without worrying about payback ability.

When the banks could not pay their obligations, the Icelanders let the banks collapse and they are now prosecuting the bankers for fraud. The big story behind all this is that Iceland is pulling themselves out of the hole. And that is exactly what I went to see for myself.

I saw that cheap energy is what saved them. And in Hawaii, we can do the same – with geothermal in the short term and with all the other renewables we have in abundance in the longer term.

Hawaii and Iceland, with a combined population of 2 million people, have the best geothermal resource in the world.

Our Big Island will be over the “hot spot” for the next 500,000 to a million years.

Our two million people, out of the 7 billion people in the world, are so lucky.

More commentary to come….

In the meantime, here are some pictures from Washington, D.C. This is Helen Davis, an energy staff member for Rep. Hirono. I’m so happy to see Hawai‘i’s people represented at the conference.

Occupying the Capitol. There are rows of tents, all neatly organized. More than 50. I understand there is another Occupy encampment, too.

When I was walking toward the Capitol, I saw this monument in a park.

Read Part 3 of this series.

Go back to Part 1.

Peak Oil

Peak Oil Conference in November

September 26, 2011 Richard Ha

In November, I will attend my fourth Association for the Study of Peak Oil (ASPO) conference.

I highly recommend that Hawai‘i people in decision-making positions attend.

This year’s conference theme is “Truth In Energy,” and it will focus on the importance of transparent and reliable energy information, and the need to educate influential leaders and the public on the peak oil energy challenges facing our nation.

Energy is a very complex subject, and it’s sometimes difficult to separate the truth from the marketing hype. The value I get from attending these conferences is in being able to determine the difference between the middle ground, the fringe, the hopesters and the hypesters.

For example, when I went to my first ASPO conference in Houston, a speaker pointed out that the peak of oil production in the U.S. occurred in 1970. Although Saudi Arabia keeps their oil reserve data secret, there are ways that regular folks can make reasonable assumptions. He said that there were people from Saudi Arabia working in the oil industry in Houston, and that they had learned how to not waste their resource.

On April 13, 2008, Reuters reported that King Abdullah said, “When there were some new finds, I told them, ‘No, leave it in the ground, with grace from God, our children need it.’”

That was not reported in the mainstream media, but because I went to the ASPO conference, I read about it. I heard the King very clearly.

There are also others who, through regular means like Google Earth, make reasonable assumptions.

Take a look at this animation and narrative about Saudi oil fields. It seems reasonable to assume that the Saudis cannot keep on pumping endlessly.

Any “rubbah slippah” person can understand that this shows more and more oil being sucked out of the ground, and it will begin to decline. It’s all about supply and demand, and because oil is a finite resource, we should expect rising oil prices.

At the 2009 conference in Denver, someone showed a graph that pointed out the direct relationship between oil price, GDP and the last several recessions. The data showed that when oil prices exceeded $85 dollars or so, we could expect a recession.

The worrisome part is that hardly anyone makes the oil cost/recession connection. If they did, they would realize that unless we in Hawai‘i find a way to avoid the rising cost of fuel and electricity, we are at best looking at a future of very little economic growth. Because we are more reliant on oil than most, our future could be very bleak.

That is why we, in Hawai‘i, must force the change and go to low and stable cost geothermal faster, rather than slower. This will allow us to dodge the oil bullet, and will give us the opportunity to unleash the abundance of renewable energy alternatives available to us.

I really returned from a study trip to Iceland and learned that by using cheap geothermal and hydroelectric, that country is now food and fuel secure.

I am noticing more and more homeless people here. Many of them are working homeless. As we bring on more low-cost, stable geothermal, our standard of living and economic activity will rise. More and more of the working homeless will be able to get their families off the street. We can do this without having to tax the people.

We must force the change, but we will need everyone’s help. We are all in this together.

Dr. Charles Schlumberger, who is in charge of the airline section of the World Bank, spoke at the last ASPO conference. Watch video of his talk The Future of Air Transportation.

Jeff Rubin, former Chief Economist for the Canadian bank CIBC, spoke too, explaining how the world economy will shrink as oil prices rise. Here is his Oil and the End of Globalization speech.

This has very strong implications for Hawai‘i. We all know that we must get off oil. But the problem is the cost and practicality of the solution. Solutions need to be cost-effective and proven technology, as well as environmentally friendly.

Geothermal fits this requirement. But we need to move much faster than we have been.

When I return from this year’s conference, I will post this year’s speeches.

Geothermal

Video: Geothermal Energy Forum

August 31, 2011 Richard Ha

Over the weekend I participated in a geothermal energy forum here in Hilo.

We have got to start doing something.

Watch video of the forum here.

The coverage is from Big Island Video News, and it starts like this:

HILO, Hawaii: The public courtship concerning the future use of Geothermal Energy continued with this forum in Hilo on Saturday.

A large and varied panel of specialists discussed the sustainable energy that is abundant on Hawaii Island, a growing candidate to lead the Hawaii towards energy independence.

Many faces seen in previous forums were present: including Richard Ha, local farmer and co-chair of the Geothermal Working Group, back from a recent trip to Iceland where he gathered information of that nation’s use of geothermal power.

A mix of government and utility officials, and business persons rounded out the panel….

See the rest here.

Geothermal, History, Renewable Energy Sources

My Speech at the Council of Native Hawaiian Advancement Conference

August 26, 2011 Richard Ha 1 Comment

Noe Kalipi, Ramsay Taum and I – all board members from Ku‘oko‘a – each spoke for five minutes at the Council of Native Hawaiian Advancement conference.

Noe and Ramsay were just awesome. It’s clear that Ku‘oko‘a is a native Hawaiian company with native Hawaiian sensibilities. The good wishes and warm requests for information were very humbling.

Senator Akaka spoke right before us.

Here is the speech I gave.

Aloha Everyone,

I am Richard Ha, chairman of the board of Ku‘oko‘a. Ku‘oko‘a is trying to align the needs of the people with the needs of the utility.

I want to start by telling you who I am and what my values are. Mom is Okinawan, Higa from Moloka‘i; Pop’s father was Korean, Ha. My pop’s mom was Leihulu Kamahele. And her mom was Meleana Kamoe Kamahele and her dad was Frank Kamahele. Our family land was down the beach at Maku‘u in Puna. We were very poor but didn’t know it.

Pop would tell stories at the dinner table. He would talk about impossible situations, impossible odds. Then he would pound the table and point in the air. “Not, no can. CAN!”

And he would say, “There are a thousand reasons why no can. I only looking for the one reason why ‘Can.’”

He told us to find three solutions for every problem, and then find one more just in case. He only finished sixth grade, but he was a wise man.

I was a kolohe kid growing up. I went to UH Manoa, where I flunked out. Too many places to go, people to see and beers to drink. I was drafted, and applied to go to Officers Candidate School, and then I volunteered to go to Vietnam. Ended up walking in the jungle with a hundred other soldiers. If we got into trouble there was no one close enough to help us. The unwritten rule was that we all come back, or no one comes back. I liked that and kept that attitude ever since.

I went back to UH and majored in accounting so I could keep score when I went into business. Pop asked if I would come back and help run the family chicken farm. I came back and saw an opportunity to grow bananas, but I had no money.

“Not, no can, CAN!” so we traded chicken manure for banana pulapula. By questioning everything, looking into the future and forcing change we have been able to survive in farming for more than 30 years.

We farm 600 fee simple acres with 60 workers. Five years ago, we noticed supply costs had been steadily rising, and we found it was all due to oil. I was the only person from Hawai‘i to attend three Peak Oil conferences. I went to learn about oil so that we could position our business.

There I found out that the world had been using twice as much oil as it had been finding for the last 30 years. This is a very serious situation. I am stuck with this knowledge and that knowledge has become my kuleana. I know what is likely to happen and so try to find solutions that are good for all of us.

There are truly Native Hawaiian sensitivities embedded in our Ku‘oko‘a team and organization. The board and the team we have put together are the best we could find. Ramsay Taum and Noe Kalipi are members of our board and we will each say a few words. Board members went to Hilo to participate in the festivities for the seven vaka that came up from the south. We felt that it was important.

Right now there are no guidelines to choose the low-cost, proven technology solution that eases the pressure on the rubbah slippah folks. We can do this. You folks all know the consequence of rising cost of energy, water, school lunches, etc. It is the folks on the lowest rungs of the economic ladder who will get their lights turned off first. Too often they are Hawaiians.

Iceland has managed to make themselves energy secure and food secure. Their electricity costs are less than half of ours. Can we find the solution to our energy problems while taking care of the rubbah slippah folks too? Leaving them behind is not an option. If we search for the solution, if we ask the question, we can find the answer.

In modern Hawaiian history, the economy has taken taken taken and the culture has given, given, given. We have a unique opportunity now where the economy can give and the culture can receive. If we can stabilize energy costs at a low level, as oil prices rise we will become more competitive to the rest of the world and our people’s standard of living will rise. We can address the energy problem and take care of the rubbah slippah folks too.

As Pop used to say: “Not ‘no can;’ ‘CAN!’”

Geothermal

Huge Turnout at Annual Native Hawaiian Convention

August 24, 2011 Richard Ha

I am at the Council for Native Hawaiian Advancement‘s 10th Annual Convention today. More than a thousand people are participating.

Ku‘oko‘a supports the goals of the Council for Native Hawaiian Advancement

Noe Kalipi, Ramsay Taum and myself, three native Hawaiian board members of Ku‘oko‘a, will speak about our group’s vision for Hawai‘i. We believe that Ku‘oko‘a’s focus on stable, low-cost, clean energy is in line with Hawai‘i’s needs and especially the Hawaiian people’s needs.

That’s Robin Danner, Council of Native Hawaiian Advancement head, with Department of Hawaiian Home Lands chairman Alapaki Nahale‘a (middle)

To generate electricity, we will utilize geothermal to replace liquid fuel, which is projected to continue rising in cost. It is proven technology that is, for instance, used in Iceland to help make their electricity 100 percent fossil fuel-free. They deliver electricity to their people at less than 10 cents kWh – one-third of what electricity costs on O‘ahu and one-fourth what it costs on the Big Island and Maui.

Two of our other board members will be keynote speakers at the upcoming Asia-Pacific Clean Energy Summit and Expo.

Biofuel, Food Security, Geothermal, Iceland, Renewable Energy Sources

Iceland, In Conclusion

August 15, 2011 Richard Ha 1 Comment

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.

If what the International Energy Association says is true – that we have come to the end of cheap oil – then the bottom line is that by decoupling from expensive oil, we protect ourselves. It is the cost that’s important, not the color or anything else.

In Hawai‘i, we are trying to replace fossil fuel oil with biofuels. But if the replacement is as expensive as oil – which biofuels for electricity generation is – this doesn’t do us any good.

Geothermal, on the other hand, would totally disconnect us from the high cost of energy. It’s the cost that is the most important. And because it’s safer to diversify, we should also maximize our other energy sources, such as wind and solar, without destabilizing the electric grid.

When you go over to Iceland, you see that they have inoculated themselves from rising oil prices. In doing so, they have also made themselves food secure, because their electricity is cheap relative to other sources of energy. For instance, when they export aluminum, which is electricity-intensive, as long as their electricity costs are lower than that of their competitors, they will always have money coming into their economy.

Iceland’s economy depends on cheap energy and fishing as its base. (And Iceland’s tourism increased when the country devalued its currency, so cheap energy had a double benefit.) Hawai‘i’s economy depends on the military and tourism. We need a third leg to give our economy some stability and security.

It was interesting for me to see how a native people, left to their own devices, coped. As of today, Iceland is more energy and food secure than Hawaii! This is why Ku‘oko‘a needs to purchase HEI. The rubbah slippah folks all know this to be true.

Cheap electricity makes an economy competitive in the world. This is where the people’s needs and the utility’s needs should coincide.

Everybody knows that Iceland’s economy crashed in 2008. That happened because they privatized their banking industry, the banks went crazy, and they got caught by the downturn. But because the country has cheap energy, they are pulling out of their recession and the excesses of their banks – while we are struggling to forestall a double dip recession.

This shows us that if you’re in a competitive position relative to energy, and you don’t do anything stupid, you can withstand any oil-induced depression or recession, which is where the world is headed.

Iceland is also concerned about its dependence on fossil fuel for transportation. It has a commercial hydrogen refueling station, and I rode in an SUV powered by methane from municipal waste. They are even looking into making liquid fuels from geothermal electricity and CO2.

Iceland is like a little lab. You go over there and look at the country and say, “Holy smokes! It can be done.”

Now to do it here.

Food Security, Geothermal, Iceland

‘From Across the Sea: Aloha Iceland’

August 13, 2011 Richard Ha 1 Comment

Jon Letman, a writer on Kaua‘i, wrote an article and put together an audio-slide show looking at similaries between Hawai‘i and Iceland after he visited Iceland five years ago. It’s called “From Across the Sea: Aloha Iceland.”

From the article, which appears in the Iceland Review Online:

It comes as no surprise that Iceland and Hawaii rarely come up in the same conversation, but perhaps its time that changed. After all, Europe’s northernmost island nation and America’s southernmost island state share more in common than one might imagine…. Read the rest

Iceland has really grabbed the bull by the horns and it has solved its problems of food security and energy. It’s incredible that it’s Iceland who did this.

Hawai‘i could – we should – be doing this.