Tag Archives: Big Island

HECO: The Most Ingenious Production/Marketing Model I’ve Ever Seen!

HECO has come up with a rather ingenious model to solicit biofuels for running its electrical generation equipment for the Big Island. It works like this:

If the farmer growing the product for biofuel needs a higher price than the current market price – which is way too low – HECO will raise the return to the farmer by raising the cost of electricity it sells to the farmer.

Also, to create demand-pull in the market place, HECO will promote “green” fuels. The message will be:

“There’s more to life than just money. Support expensive green biofuel – it’s a quality-of-life issue.

It’s brilliant! By far the most ingenious agricultural production/marketing model I’ve seen yet!

Some farmers are old enough to remember The Great Liliko‘i Glut of the 1950s. Farmers were told to grow liliko‘i and “they” would buy it all. Practically every house had a liliko‘i trellis or two. When the promoters could not buy the liliko‘i, everybody made liliko‘i juice. People who are my age and live around Hilo know a lot about liliko‘i.

In the early 1980s, it was The Great Cacao Rush. A company came into town saying they would buy the entire local production of cacao, which would be used to make extra special chocolate for the ultra-high-end market. All the farmers had to do was buy certain “special” seedlings, which only the company happened to have.

Although the HECO idea for biofuel production is brilliant, I think that farmers would prefer that HECO grew the biofuels crop themselves, and that farmers get the exclusive right to provide the really, really special rare seedlings from a farmers’ co-op (made up of all the farmers in the state) at a pre-determined, kind-of-high price – with an escalator that moves up with the electricity bill. Payments, by bank draft, would go straight into the co-op’s bank account, six months prior to planting.

This way, the farmers would make money. And as we all know: “If the farmer makes money, the farmer going farm.”

Adopt-A-Class, Year 4!

It’s the start of a new school year, and we are kicking off our fourth annual Adopt-A-Class project. This is where we ask if you’ll give a little bit to help students at Keaukaha Elementary School take field trips.

Why Keaukaha Elementary? Early on, when Richard became interested in the Thirty Meter Telescope, at that time “possibly slated” for Mauna Kea, he noted that the multi-million dollar telescopes atop the mountain sacred to many Hawaiians were not benefiting the Hawaiian community at all.

He focused in on Keaukaha as one of our most Hawaiian communities. He learned that students at the elementary school there only took walking field trips to sites near their school, due to lack of funding. He and his friend Duane Kanuha decided to ask the community to help.

***
It’s been four years since then, and truly amazing things are happening at Keaukaha Elementary School these days.

For a very long time, it was near the bottom of the list in all rankings and achievement. And when the federal No Child Left Behind (NCLB) program started, Keaukaha Elementary was one of the first in the state to be put on corrective action – after what its principal Lehua Veincent describes as “years of struggling to meet state standards.”

Under his leadership and during his first two years as principal, the school met federal standards in 2007 and 2008, and in 2008 it was one of seven schools in the state to exit restructuring status under NCLB.

Kumu Lehua has had a phenomenal impact on Keaukaha. (If you know him, you won’t be surprised to hear that he’s quick to acknowledge the importance of his “dedicated and committed faculty and staff, and the collaboration with community and business partners”).

To Kumu Lehua, though, this whole topic is about so much more than merely academics. He talks about the change in behaviors and attitudes – social aspects that are not accounted for under NCLB.

“When we see 550 people come to our Open House, as they did two weeks ago, that’s powerful,” he says. “When we have 15 kupunas that come and have our children go and sit on lauhala mats and listen to our stories of Keaukaha, that’s powerful. When we’re able to take the entire school, 350 students, and have them chant and hula in unison, that’s powerful. Those are the things that set us apart from everyone else. They are our uniqueness, our spirit.”

He said they always have to remember the school’s mission: “That our children are proud of who they are and where they come from.”

***

In 2007, we did our first Adopt-A-Class campaign, and met our goal of raising enough for every class at the school to take one field trip both semesters. The cost per field trip per class is about $600 (that’s for bus, admissions, etc.); classes sometimes find ways to use that amount to take more than one field trip per semester.

Students have taken their huaka‘i, their field trips, to Hamakua Springs Country Farms, Waipi‘o Valley, Mauna Kea, ‘Imiloa Astronomy Center and more. “Our 4th graders went up to Mo‘okini Heiau and spent a whole day there,” says Kumu Lehua, “learning the whole historical perspective of why it exists. It was a wonderful day for them.” See the links above for some past stories we’ve done about the kids’ excursions. Here are some of the students’ thank you notes.

Kumu Lehua says what’s important about the Adopt-A-Class program is taking the learning into other places where some of the skills and concepts they learn about in class are more easily visible, in a setting that has been discussed, learned about. “That’s where the application becomes a little more real,” he says. “Everything is so focused on reading and math, but not necessarily making connections between those skills and the outside.”

He says that Adopt-A-Class has brought about a lot of other opportunities for the school.

“People hear about Adopt-A-Class and they donate,” he says. “They tell other people, and people tell people, and you have a slew of people wanting to help, whether it’s with snacks, events, opportunities.”

***

These days the school philosophy centers on “Maoli Keaukaha,” the spirit of Keaukaha. Everything they do, explains Kumu Lehua, ties into one of five key points that make up the spirit and uniqueness of Keaukaha – genealogy, history, place, language and traditional practices.

“It’s the spirit of Keaukaha,” he says. “It’s what you cannot find anywhere else.”

***

Can you adopt a class? You or your company can donate $100 toward the adoption of one class (it gets grouped with other donations), or $600 supports the whole class. Your donation is tax-deductible and 100 percent goes to the school.

See the Hamakua Springs website for more details and how to donate.

Mahalo.

‘Aloha, Aloha, Call When You Find Land!’

I stayed at the Ala Moana Hotel last week while attending the Asia Pacific Clean Energy Summit, which had 1400 participants and was huge and exciting.

One evening, as I sat on the lanai of my hotel room looking toward Waikiki and all the lit-up hotel rooms and bright lights and the headlights and tail lights of cars, it came to me: Everything visible was dependent on oil.

The only thing I could see that was good was that the Macy’s sign is cheaper to power than the Liberty House sign it replaced. Shorter sign.

Sitting out there on the lanai, it became clear to me that if we follow HECO’s plan for using biofuels to generate electricity for the Big Island, we will soon have limited food resources and will be making plans to send people out to discover new lands.

Back in 2007, I spoke at the Hawaii Island Food Summit:

I told them I had a nightmare that there would be a big meeting down by the pier one day, where they announce that food supplies were short because the oil supply was short and so we
would have to send thousands of people out to discover new land.

I was afraid that they would send all the people with white hair out on the boats to find new land—all the Grandmas and Grandpas and me, though maybe not June.

Grandmas and Grandpas hobbled onto the boats with their canes and their wheelchairs, clutching all their medicines, and everybody gave all of us flower leis, and everyone was saying,
“Aloha, Aloha, call us when you find land! Aloha!”

If, instead, we on the Big Island follow our own plan of maximizing
our geothermal resource, and start to add others such as wind, solar and ocean resources as they scale up; and if we emphasize lots of small- to medium-sized diversified farms, we will not need to send out the canoes to look for new land.

The Big Island could help solve O‘ahu’s food and fuel issues, too, so it wouldn’t be necessary for them to send their white-haired folks off, either.

The Asia Pacific Clean Energy Summit was exciting and I’ve spent all week trying to put all the goings-on into perspective. O‘ahu has a real serious electricity problem. It has no proven-technology base power alternative to fossil fuels. And it has limited opportunity to integrate solar and wind.

I can absolutely see why HECO was anxious to institute Smart Grid. It was an attempt to wring every bit of efficiency out of intermittent sources of power.

I can also see why HECO made the decision that biofuels would have to be a solution for O‘ahu. The biorefinery is located on O‘ahu. I can even understand why they changed their minds and decided to bring on more PV solar. THEY do need everything!

What I just cannot understand is why HECO tried to force the Big Island to go that route.

We on the Big Island need a different strategy – one that focuses on the Big Island’s resources and environment.

Video: Climbing Up The Bamboo Pole

Richard Ha writes:

Awhile back I spoke to the UH Hilo Student Association Senate leaders about geothermal energy. I warned them that exponential growth fueled by a finite resource – oil – was a serious problem for us here on the Big Island.

Along the very same lines, Lloyds of London just warned its business clients to prepare or it could be catastrophic. I wrote about Lloyds of London's warning here.

I told the student leaders that we need to know what we are going to do before a catastrophe happens. "White water coming, we need to climb up the bamboo pole and lift up our legs." 

This video sums up everything I talk about on this blog.

Richard Ha Video 

Farmers & Biofuels

This article appeared in Pacific Business News on August 13, 2010:

Biofuels have supporters, but
scale remains an obstacle

Pacific Business News (Honolulu)
– by Sophie Cocke

Three years ago, representatives of Hawaiian Electric Co. met with farmers on the Big Island to discuss growing feedstock that could be converted to biofuel and used in the company’s generators. But discussions grew quiet when local farmers calculated how much they would be earning.

There are 42 gallons in a barrel of oil, each container of which weighs 286 pounds. So oil, at $80 a barrel, would yield the farmers about 28 cents per pound.

“There’s hardly anything a farmer will grow for 28 cents per pound,” said Richard Ha, one of the local farmers who attended the meeting.

Profits decline even more given that the feedstock must be drained to obtain the oil. Four pounds of a crop can result in only one pound of oil, meaning farmers would be getting paid only 7 cents per pound for their crops.

“The farmers never went back to another meeting,” said Ha.

This story looks at biofuels, and their role in Hawaii’s push for energy independence…. (Read more)

It is no secret that I am very concerned about betting too much of our future on biofuels just because we feel that we need them desperately. The critical chokepoint is feedstock.

We need to take a deep breath and we need to talk to farmers. Read about when I asked HECO not to let us get flattened by the wild bull.

The Women of Hamakua Springs, & Tilapia

Last week we gave our workers fish from our first tilapia harvest.

PlanningFarm Manager and Son-In-Law Kimo, Grandma (my mom), my daughter Tracy, and my wife June

We are convinced that oil prices will keep rising, and that it will cost more and more to bring fish to Hawai‘i from all over the world.

GrandmaGrandma, in the middle of the action

We are trying to fit tilapia production into a zero waste program. Since tilapia is a vegetarian fish, we will be experimenting with how to utilize our waste bananas as well as vegetables. We want to be prepared for when it might be profitable to produce tilapia commercially.

Full netJune has a full net

For those who have not tried locally grown tilapia, I can tell you that I was so surprised myself to find out how good this fish is. Chef Alan Wong serves it in his restaurant. That is how good it is.

Heavy net kimo and juneAnd it’s heavy!

One of my favorite ways to prepare it is to get a smaller sized fish, deep fry it very crispy and eat the whole thing.

AurellioGrandma giving some fish to Aurellio

Farming is a tough business. We’d like to raise our workers’ pay but are finding it very difficult to do so right now. June is the one who made sure we are growing fish for our employees. We are committed to doing this from now on.

Women of hamakua springsThe women of Hamakua Springs

How Geothermal = Food Security

Our “food security” is about farmers here in Hawai‘i farming. We know that Hawai‘i imports more than 80 percent of its food, and has only a seven-day supply of food on island at any one time.

Being more food secure means growing much more of our food here. How do we make that happen?

If farmers make money, the farmers will farm.

The cost of electricity cost is directly related to farmers farming or not. Farmers are price takers, not price makers. So as electricity costs go up for consumers, wholesalers and retailers, farmers’ prices necessarily go down and so do their profits.

We all know that world oil supplies will be declining and that petroleum prices are likely to be very high in the next few years, making fossil fuel-produced electricity rise very high in price.

Do you know what the most energy-intensive part is regarding getting our food? Surprisingly, it’s not the “on farm” energy usage. It’s the energy needed for the stop-and-go transportation of getting food to your home,  the cost of refrigeration during that journey and the cost to refrigerate your food once it’s at your home.

So what will help with food security?  Cheap electricity. On the Big Island, that means geothermal electricity.

Produced locally, it is the cheapest form of electricity here. For more than 15 years it has operated without subsidies, and it even earns money for the state of Hawai‘i—currently more than $3 million a year.

Cheap electricity will lower wholesaler and retailer operating costs and therefore leave more discretionary income in the pockets of consumers, and they will be able to buy local produce. It will result in less pressure on farmers to lower their prices beyond what is reasonable, and they will make decent livings and continue to farm. And we will have increased food security out here in the middle of the ocean.

If farmers make money, the farmers will farm!

Michelle Galimba & Kuahiwi Ranch

Richard told me he is very impressed with what Michelle Galimba and her family are doing in Ka‘u, and so I thought I’d give her a call and learn a little more.

Michelle galimbaMichelle (left) and her family

I learned that Michelle grew up on dairy farms in Ka‘u and then lived in Haleiwa on O‘ahu, where her dad worked for Meadow Gold Dairies. These days, she and her family own and run a cattle ranch in Na‘alehu.“There’s a little bit of irony in the name,” she told me about their Kuahiwi Ranch. “Kuahiwi means ‘mountain,’ but the other meaning is ‘back country,’ like ‘the sticks.’”

To some people, Ka‘u has that sort of back country reputation. Michelle says she thinks people in Ka‘u are starting to rethink values, though, such as of its traditional culture, and that the lifestyle of Ka‘u is becoming more and more relevant.

“If we can find success stories for people in Ka‘u,” she says, “I think that goes a long way in changing other people’s perceptions and also our own, for ourselves.”

She mentions the coffee industry that’s recently sprung up in Ka‘u. “My friend Chris [Manfredi] started talking with the coffee farmers and thought their coffee was really good. He entered it into this international competition and it did really, really well. People were just so thrilled.”

She is one of the organizers of this year’s Ka‘u Coffee Festival, which will be May 1st and 2nd.

“There’s starting to be a stable of agriculture products in Ka‘u that are premium and interesting and something people can be proud of,” she says. “It’s what I’m hoping for with our beef. That we can get other ranchers involved with it and build up this market for it.”

Kuahiwi Ranch started in 1993, about the time the sugar plantations were going out and sugar cane lands were becoming available. It’s operated by Michelle’s parents, her youngest brother and herself, with age-appropriate help from her daughter and her brother’s three children (who range in age from 8 to 13).

They raise cattle for beef on 10,000 acres between Wood Valley and Waiohinu. Their cattle are free range and grass fed, and the cattles’ diet is also supplemented with grain.

“It’s a little different from grass-fed beef,” she explains. “If you just feed the cattle grass, the tenderness varies. Our beef is a little bit more expensive, but it’s more consistently tender.”

From the Kuahiwi Ranch website:

With the growing public interest in eating local and sustainable food systems, Kuahiwi Ranch decided to offer the public the best beef we know how to produce — beef that is tender, mild-flavored, and of consistent quality, but also raised naturally and humanely.

Our cattle always have plenty of room to roam and green grass to eat, but they are also given access to a grain ration for approximately 90 days.  This grain ration consists of three natural ingredients — corn, barley, molasses, that’s it.  It’s kind of like granola.

Since the late ‘70s, most Hawai‘i ranchers ship their cattle to mainland feed lots, which has been the most economically efficient model. In the last three or four years, says Michelle, as corn and transportation prices have risen, things have changed and it’s become more viable to keep cattle here.

There is little infrastructure here, though, to process the beef, and until recently there wasn’t a market locally for grass-fed beef.

She says you cannot get local beef at any supermarket on O‘ahu, and that this is a focus for Kuahiwi Ranch right now. “But everything is set up to come over in a container from the mainland,” she says. “It’s what everybody’s used to working with.”

“It’s an ongoing struggle on all kinds of fronts, and in the industry as a whole, to get it to work,” she says. “On the other hand, there’s a lot of enthusiasm – from chefs and people at the farmers’ markets. That’s kind of what keeps us going.”

Here on the Big Island you can buy their beef at KTA, where it’s sold under the “Kulana Natural” and “Mountain Apple” labels. She also sells their product, under the Kuahiwi Ranch name, at the Na‘alehu Farmers’ Market on Wednesdays and at the Volcano Farmers Market on Sundays.

Somewhere in the midst of all that dairy farm living and cattle raising, Michelle went to UC Berkeley and got a PhD in comparative literature. It’s a little jarring in its dissonance from what she does now – the ranch’s marketing as well as its accounting, though she says her favorite thing is to get on her horse and drive the cattle – until she is asked about her thesis, which was about an 11th century Chinese poet named Su Shi.

“He was this academic superstar,” she says, “and in China if you were really good in literature you rose through politics really quickly. He became the premier, running the whole country, but then he was exiled to, like, Ka‘u.” She laughs.

“He wrote a lot of poems about having to grow his own food and how rewarding that was,” she says.

I get the impression that Michele and Su Shi would have gotten along.

More Thoughts on Peak Oil – And Our Solution

I thought that I would revisit a post I did on my first impressions of the Peak Oil conference in Denver this past October. I have added comments to the post I did back then. My new comments are in italics.

Examining Energy Alternatives

I learned something interesting at the Peak Oil Conference I’m currently attending in Denver. It’s about a pattern. When U.S. oil costs exceed four percent of the gross domestic product – so, when the price of oil hits $80 per barrel – we go into recession. (Note that this does not mean oil prices won’t go even higher than $80 per barrel.)

I think that investors are very reluctant to bet against the pattern above. They know that at some point above 4 percent GDP, they will be playing with fire. Last July’s oil price of $147 and the immediate collapse is fresh in their memories as something that can happen. So we watch as the stock market and oil prices twist themselves into a pretzel, according to the strength of the U.S. dollar, the strength of the Chinese economy, the cold winter, the status of Iraq, the riots in Iran, and on and on.

We should be paying attention to the actual supply situation. The natural decline rate of the oil supply is between 5 and 6 percent. That means we need to find 4.5 million gallons per day of new oil supplies — every year — or we are going to be short.

Right now, we have more than enough oil. But Jeff Rubin, former chief economist of CIBC, predicts $225 per barrel oil by 2012 and with it the end of globalization, a movement towards local sourcing and a need for massive scaling up of energy efficiency.

We need to move to geothermal now, not thirty years from now.

David Murphy talked about Energy Return on Investment (EROI), and I asked him what he thought the EROI is for geothermal. He said around 10 to 1, and he agreed with me that it is an attractive alternative energy to pursue for Hawai‘i. This was the consensus of everyone I asked about geothermal. Because geothermal costs are stable, it’s a no-brainer.

Terry Backer, a panel member and long-time Connecticut legislator, pointed out how he sees the economy unwinding. He said that people in his state had been doing okay. In early 2007, although things were tight, people had around a $400-500 per month cushion. But then the price of heating oil was high in the winter, and then the price of gas went to $4.50 per gallon, and food prices went up too. It just stripped people of their “cushion.”

If the consumers have no extra money they cannot buy things. Elizabeth Warren gave this speech that says it all. (Coincidentally her base year is 1970, the year that oil peaked in the U.S.).

The question is, how do we give the middle class disposable income? Choosing the low cost alternative to fossil fuel can help. We have geothermal, which is this.

It’s exactly why we need to move to geothermal. It will stabilize costs, and protect folks forever from ever-higher electricity and water bills that result from rising oil prices.

We need to force that change, not give a thousand reasons why “no can.” Sure we can try other alternatives. But as farmers always say: “What works, works.” Geothermal works.

We must be careful not to end up like Iceland. Fishing and geothermal worked. But instead they started chasing after finance matters, whose foundation rested on sand. Their economy collapsed and now they are left with fishing and geothermal—the things that still work.

And when people start buying electric vehicles, this will protect them from gasoline costs, too. As for businesses, their customers will have more discretionary income to spend. The government will see fewer folks fall through the cracks.

We probably are going to be dependent on gasoline for transportation for a long time. One practical way for Hawai‘i people to protect themselves from high gasoline costs is to buy hybrid vehicles. In Japan, hybrids are a hit. On the Big Island, the more “base power” that comes from geothermal, the more discretionary income people will have. The more discretionary income people have, the more business prospers and the more jobs are available for people who are raising their families.

In the final analysis it is about the consumers. Consumers drive the economy. We tend to forget that.

For native Hawaiians, the use of the geothermal resource will generate revenues in royalties and possibly rents as well. They are consumers, too.

Biofuels, on the other hand, are not expected to be cheaper than oil, and may even need subsidies from consumers. Why would we do that, when we can instead save consumers money by using geothermal?

By now, everyone must be aware that biofuels are wishing and hoping. We wish it would work. Farmers know that it will be very expensive and that it will take money away from consumers.

We need to put in a cable to O‘ahu. They need base/dispatchable power over there, on top of which they can put solar and wind. Without that, O‘ahu will be hopelessly dependent on oil.

All that is true. But we need to take care of the people on the Big Island before we even consider another option. That point was made abundantly clear at a presentation on geothermal I did for the Keaukaha Community Association.  Done right, with community input and community benefit, I’m confident that the people would look favorably on sending power to O‘ahu. But it is a Big Island discussion.

As a farmer, I am concerned about where we are going to get the fertilizer to feed ourselves. Nitrogen, the building block of protein, is extracted from air using high heat and pressure. Oil and gas are what is used now, and that process takes lots of power. But if oil and gas prices rise enough, geothermal power can be substituted. We need to place ourselves in a position to win.

Again, geothermal would generate a lot of royalty money for the Hawaiian people. Without this revenue source, we will see more and more cuts to social services.

I am very encouraged to see that Hawaiians are leading this discussion. This is the right thing to happen.

Geothermal can be a blessing for the Hawaiian people.

If we can maximize its use as a resource for the native Hawaiian people, we will also strengthen our middle class. If we do that our businesses will flourish, everybody will benefit and our future will be hopeful

Whale/Rider

Serrell Kanuha is my very good friend Duane’s brother. He was our postman for awhile, and would frequently stop and talk story.

Serrell does things in a big way. After retiring from the Post Office he took up mountain biking, and he would tell his brother Duane to drop him off at the Saddle Road side of Mana Road and pick him up later at Waimea.

My son Brian told me that Serrell was one of the Ninja motorcycle riders that all the young guys respected and looked up to. His legs are all shot up from Vietnam but that is no obstacle.

I’m not surprised he is now out on the ocean. Serrell and Duane’s Kanuha ancestor was in the first wave of canoes that came up from the south Pacific.

He’s into stand-up paddle surfing now. Recently while he was out off Honoli‘i, he was as close as 30 feet from four or five whales, plus a baby.

IMG_0650_9

He said they would all be heading in one direction on the surface and make you think they would pop up further along in that same direction. Instead they would do just the opposite.

On the left side of this picture, just outside of the frame, is Bay Shore Towers.

IMG_0651_10