Tag Archives: Hawaii

Why Geothermal Will Increase Everyone’s Standard of Living

The paradox of living in Hawaii has long been that the native people give and give, and the economic system takes and takes.

Finally, we have a solution—one that is good for everyone and in multiple ways. I’m talking about geothermal.

We are using up our “cheap oil” every day now, and without cheap oil, our economy and world economies will not grow. Very soon, we will only have expensive oil, and when costs are too high we go into recession.

The growth of the world’s GDP will be less than it was yesterday, and maybe for as long as we can imagine. Neoclassical economists assume constant growth, but this is impossible when world oil supplies are decreasing as they are now.

This is why I’m such an advocate for using geothermal for energy on the Big Island. Its cost will not go up; it will stay steady even as world oil prices increase. As that happens, we will become relatively more competitive to the rest of the world. As the world’s standard of living declines, we will stay the same.

This means that our standard of living will actually increase, relative to the rest of the world.

Geothermal’s energy return on investment (EROI) is high. EROI is key:

…EROI is similar to its economic analog, which is return on investment (ROI). The idea is that you have a cost of getting a resource and hopefully you input that cost and you get some oil out. EROI is simply the energy produced from an energy extraction process divided by the energy you put in. We add up the cost of building the rig, the diesel fuel used on a rig, and what you get is a ratio of energy out divided by energy in. That number is essentially a measure of quality. It’s an efficiency calculation, but you can understand it as a measure of extraction and how difficult that extraction process is. Historically, if you look back at East Texas and see a lot of the big oil fields in the United States, the EROI was very high. Today, it’s obviously a much more complicated industry. For example, deepwater platforms cost billions of dollars and the wells are much deeper. The energy input has grown a lot. In general, EROI is this measure of extraction quality and how that changes over time…. Read more at The Oil Drum

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

From the Star-Advertiser article:

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

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

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

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

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

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

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

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

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

HECO Says: ‘Let Them Eat Cake!’

I remember that in the 7th grade we read about a French royal, who – when told that the peasants didn’t have bread and were hungry – is said to have stated, “Let them eat cake.”

I have come to the stark realization that the Hawaiian Electric Company (HECO) has a duty to keep the stock price of its parent company, Hawaiian Electric Industries (HEI), healthy.  It’s not HECO’s mission to take care of Hawai‘i’s people.

But its strategy of raising the cost of electricity to its white-haired stockholders, in order to keep up HEI’s stock price, is as “brilliant” as its strategy of raising electricity rates of farmers so it can pay the farmers the high price they will need to raise biofuel crops.

Cynics have described it as putting money into one pocket
while taking it out of the other.

I just attended the 2010 Hawaii Ag Conference at the Ihilani
Resort and spa at Ko Olina on O‘ahu, which was very well attended.

Although the conference covered many topics, I was most interested in the Hawai‘i Biomass and Bioenergy workshop, which was held all day on Friday. It asked: “What’s the buzz, and what’s in it for agriculture?”

I was encouraged because Diane Ley, the State Executive
Director of the USDA Farm Service Agency, explained that at the end of the day, there would be a facilitated discussion with farmers and Sarah Bittleman, USDA Office of the Secretary.

There were 21 speakers, starting from 8:45 in the morning until 3:15 p.m., when the facilitated discussions began. It was very good and valuable information, covering topics from the USDA Biofuel roadmap supporting President Obama’s plan to transition America’s energy economy, by Sarah Bittleman, to the explanation of Fuel Purchasing – who is doing the “pulling” in the military.

Chris Tindall, Director for Operational Energy, Deputy
Assistant Secretary of the Navy for Energy Office, told us that the Navy is interested in buying very large amounts of advanced fuels that can be used directly to power its Great White Fleet. I can absolutely understand the national security concerns. I found him very clear and persuasive.

Early on in the morning presentations, during the Q&A, I
made the statement that Food Security is about farmers farming, and if the farmers make money, farmers will farm. I pointed out that simple math shows that farmers can not expect to get more than 7 cents per pound to grow feedstock for biodiesel, and that no farmer will farm biofuel feedstock for 7 cents per pound.

Farmers all agree with me, though we would be happy to be proven wrong about this price. I have been saying this for several years, and have not had a single rebuttal to date.

Many folks gave presentations in their area of expertise and
it was all very useful and informative. But the question left unanswered was “How much will farmers get paid for growing biofuels?” All the farmers in the room knew that the answer was: “Not enough.”

The facilitated discussions were very useful. Sarah Bittleman told everyone that it is not for the federal government to decide energy policy for Hawai‘i; that we need to decide that for ourselves.

I thought this was a very important statement, because it
has been my distinct impression that the movement toward biodiesels in Hawai‘i is running because of inertia, and is not going to be overcome by simple common sense.

Ms. Bittleman authorized folks to use common sense.

Several speakers said that we could do both food and fuel. But I wonder about that. It seems to me that if biofuel prices were subsidized enough, then farmers would quit growing food to instead grow fuel. Why shouldn’t farmers strive for a better life for their kids?

It is no longer just me asking why geothermal is not
mentioned. Many, many folks are asking that same question and it can no longer be ignored, because there is just too much at stake. Saying that “People were against it 20 years ago” is just a lame excuse.

Geothermal solves so many of the crucial issues Hawai‘i
faces that we must be looking for ways to maximize its usage. Every single farmer I talk to agrees, and is incredulous that we aren’t doing just that.

I notice that Indonesian palm oil prices are very high compared to fossil fuel oil. If local farmers don’t produce biofuels, then HECO will probably buy expensive palm oil from Malaysia. But HECO will say that it’s okay because it is green.

Coming Up Next Month: Peak Oil Conference 2010

It’s Peak Oil Conference time again. I highly recommend this conference, especially for folks in decision-making positions here in Hawai‘i.

I have attended the Peak Oil conference twice before, in 2007 and again last year. Both times I paid my own way and was the single, solitary person to attend from the entire state of Hawai‘i. This time, I am going as a representative of the County of Hawai‘i.

Aspo_2k10_peak_oil_banner  

Here’s the conference information:

Join us in Washington, DC Oct 7-9 for our 6th annual dialogue with the experts on peak oil, energy and the economy.

ASPO-USA members and subscribers receive a $100 discount on all registration categories through Sept 14, 2010

Register Now

More Tangible Benefits Than Ever!

Sometimes change is glacial, sometimes swiftly chaotic. Get the latest data from the best sources with up-to-date numbers on both conventional and unconventional production, depletion, flows, costs, and the opportunities and challenges that come with them.

Keynote Speakers

Geopolitics: Dr. James Schlesinger will announce and explain, once and for all, with updated finality that “The Peak Oil Debate is Over”, for above-ground and below-ground reasons;

Global Trade: Jeff Rubin will present his views on the “End of Globalization” due to energy constraints and be available all week as part of our interactive discussions;

National Security: Admiral Lawrence Rice will explain the U.S. military’s peak oil warnings during our Saturday plenary on national security with Michael Klare, Lt. Colonel Danny Davis, and Tom Whipple;

Transportation:  Dr. Charles Schlumberger of the World Bank will discuss liquid fuel concerns in aviation while Dr. Roger Bezdek, Anthony Perl and others will focus their analysis on the future of transportation.

Investing: learn the personal and institutional upsides and downsides from the Dean of the Energy Analysts, Charlie Maxwell, and don’t miss our popular peak oil investing sessions with Dr. Schlumberger, Jim Hansen, Lily Donge, Gregor Macdonald and others.

See Full Agenda and Speakers

* It’s not just another great ASPO-USA Conference. It’s Conference+Plus. It’s the Year of Hydrocarbon Hell, and our peak oil message will not be ignored by the powers that be. Just to make sure, we are taking the message to the policymakers with a Senate Briefing, a House Briefing, a National Press Club news conference, and other targeted outreach efforts inside and outside the Beltway. Two highly-respected consulting firms are helping to organize ASPO’s first ever fire-hose-data-flow to lawmakers. First come, first served with strictly limited seating for these special events.

 * Sometimes wine and hors d’oevers are better than PowerPoints.  Imagine you’re at the opening reception having a drink with Art Berman, and you ask about his work on the 2010 National Petroleum Council Study. He shares with you the latest input from Jean LaHerrere. Or you overhear some information about the forensic investigation of the BP blowout preventer. This kind of information doesn’t come with the DVDs.

Come to the Conference on the Future of Energy

Register Today!

Call 877-363-ASPO (2776) or email webmaster@aspousa.org

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

Kalepa Baybayan – Navigator-In-Residence at ‘Imiloa

Kalepa Kalepa Baybayan is known as a “Master Navigator,” but when I talked to him the other day, it was clear the title makes him uncomfortable. He returned to it twice.

“I would disclaim being a master of anything,” he said. “I’m pretty much a student of the art. Though I have greater responsibilities, I still learn every time I go out.”

He was talking about going out on the Hokule‘a, which he’s sailed on since 1975, when he was 19. If there is anything more interesting than the story of the Hokule‘a, I don’t know what it is.

From Wikipedia:

Hōkūleʻa is a performance-accurate full-scale replica of a waʻa kaulua, a Polynesian double-hulled voyaging canoe. Launched on 8 March 1975 by the Polynesian Voyaging Society, she is best known for her 1976 Hawaiʻi to Tahiti voyage performed with Polynesian navigation techniques, without modern navigational instruments. The primary goal of the voyage was to further support the anthropological theory of the Asiatic origin of native Oceanic people, of Polynesians and Hawaiians in particular, as the result of purposeful trips through the Pacific, as opposed to passive drifting on currents, or sailing from the Americas. (Scientific results of 2008, from DNA analysis, illuminate this theory of Polynesian settlement.) A secondary goal of the project was to have the canoe and voyage “serve as vehicles for the cultural revitalization of Hawaiians and other Polynesians.”

Since the 1976 voyage to Tahiti and back, Hōkūle‘a has completed nine more voyages to destinations in Micronesia, Polynesia, Japan, Canada, and the United States, all using ancient wayfinding techniques of celestial navigation.

The next Hokule‘a voyage, now in the planning stages, is going to be a doozy: They’re planning to take the voyaging canoe around the world. The Hokule‘a is going to circumnavigate the globe, and it will probably be a two- to three-year voyage, he said.

“As ambitious as that sounds, explorers have been sailing around the world for a couple hundred years now,” he said, “so it’s not something so far out there it’s not achievable.”

“In my very early years, looking at that traditionally shaped sail cutting across the night sky,” he said, “that’s a pretty compelling vision for a young man to see. I look up there and realize that silhouette I’m seeing is probably the same one my ancestors saw.

“The excitement, amazement, the loneliness and happiness of finding land – it’s timeless. That’s universal. So you get really close to experiencing the world and the environment in the same sense your ancestors did.”

Richard wanted to know if Kalepa navigates the canoe by the ocean, looking up at the stars, or whether he sees himself as traveling in space – in the stars?

Kalepa thought about that before answering. He said he just sees the canoe pointing in a certain direction, and things moving by it. “I don’t really experience it as the canoe being moved by nature,” he said. “Rather I see nature moving by us.”

When not at sea, Kalepa is Navigator-in-Residence at ‘Imiloa Astronomy Center in Hilo. Isn’t that a great title? “They had an Astronomer-In-Residence and they wanted a Navigator-In-Residence too,” he explained.

‘Imiloa, of course, is where we “celebrate Hawaiian culture and Maunakea astronomy, sharing with the world an inspiring example of science and culture united [my italics] to advance knowledge, understanding and opportunity.”

Kalepa and the interim executive director, Ka‘iu Kimura, are both graduates of the Hawaiian language college, and Kalepa said there’s an indigenous model of leadership emerging at ‘Imiloa.

“One of the great things about ‘Imiloa is that it’s exposing us to the national and international communities,” he said.

About a year and a half ago, he and ‘Imiloa Planetarium Director Shawn Laatsch were invited to speak at Athens and Hamburg planetariums. “There is a curiosity about indigenous astronomy,” he said, “and the story of voyaging is a really compelling story. And the context is to have Shawn speak to the [astronomical] exploration being done on Mauna Kea.”

He said while he’s really happy with where Hawai‘i’s voyaging knowledge is at, there’s still a lot of work to do. “We experimented with what we were doing,” he said. ‘We learned and we gathered the info. Now it’s a matter of, How do we teach it in an effective way? Who are the teachers?

“It’s one thing to have a conversation with canoe people who travel together all the time, but trying to talk to a new generation, that’s a different kind of process.”

This seems to be another place ‘Imiloa comes in.

“We need to make a connection to the STEM program,” he said, “to science; that encourages young learners to follow the tradition of navigation; not to be navigators, but to follow the tradition of exploring.”

“My largest responsibility,” he said, about his role at ‘Imiloa, “is that the internal compass of the organization be aligned to the horizon we want to move toward.”

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!

Nominated to the Board of Agriculture

Richard Ha
Re: Nomination to the Board of Agriculture

Dear Mr. Ha:

Congratulations on being nominated by Governor Linda Lingle to the Board of Agriculture. To assist the Senate with its confirmation process, I am requesting that the following information be submitted to my office:

A written statement that addresses the following questions:

Why do you wish to be a member of the Board of Agriculture?

I am very interested in food security for Hawaii and I hope to be able to make a contribution toward that goal.

How do you perceive the role and responsibilities of a member of the Board of Agriculture?

I see the role of a member of the Board of Agriculture as making responsible decisions on agriculture matters, taking a broad societal view of things. I specifically see the role as an opportunity to help make Hawaii more food secure.

I am an advocate for all kinds of farmers–large and small, organic and conventional, on all islands, all elevations, wet side and dry. Although we may be considered large farmers, I think it is very dangerous for food security to depend on a few very large farms.

Given your understanding of the role and responsibilities of a member of the Board of Agriculture, why do you believe that you are qualified for the position? Please include a brief statement of your skills, expertise, or knowledge that would aid in your decision-making ability as a member of the Board of Agriculture.

After getting a degree in accounting at the UH, I started growing bananas nearly 30 years ago. We had no money so we traded chicken manure for banana pulapula. Eventually, we became the largest banana grower in the state and bought 600 acres of fee simple land. The things that failed along the way could fill a museum. This experience was very valuable. I have a very high respect for wise old small farmers. And, like them, I try not to talk too much.

What do you hope to accomplish during your term of service?

I hope to bring awareness that Food Security involves farmers farming. And that if farmers make money, then farmers will farm. This is not complicated.

Name three qualities that best describe you and that would make you stand out. How would these qualities benefit the Board of Agriculture?

  1. I see myself as a bridge between the “shiny shoe” folks and the “rubbah slippah” folks.
  2. I have the ability to see a desired goal in the future and can stay focused on that goal.
  3. There are a thousand reasons why no can. I try to look for the one reason why CAN!! Keep it simple, keep it focused and no give up.

Name one previous experience that would make you stand out. How would this benefit the Board of Agriculture?

I helped with the Thirty Meter Telescope decision to site the telescope on Mauna Kea. I was able to talk to folks on all sides of the issue. I learned from Patrick Kahawaiola‘a that the process was most important. I thought that, that being the case, then everyone contributing to the process made for a better final product. That means we need to aloha everyone who contributed input, whether or not we agree with the position.

Two or three years ago, I told Kumu Lehua Veincent, Principal of Keaukaha Elementary School, that the Thirty Meter Telescopes wanted to come to the Big Island. I suggested that as a start we ask them for a good faith offer. I told Kumu, “How about we ask them for five full ride scholarships for Keaukaha kids, to the best schools in the nation?” Kumu looked up at me and simply said: “And what about the rest?” I could feel my ears getting hot. I felt pretty stupid. Indeed, what about the rest.

These two lessons, “the process” and “what about the rest?” are principles I hold very close to me. And I think that this approach will benefit the Board of Agriculture.

Can you foresee any possible conflicts of interests that could arise during your service on the Board of Agriculture? How would you overcome any possible conflicts of interest?

I do not see conflicts of interest at this point. However, I will quickly recuse myself if I do.

Your prompt response in providing the above information will ensure that the Senate confirmation process can proceed in a timely manner. Thank you.

Sincerely,

Senator Clayton Hee
Chair, Senate Committee on Water, Land, Agriculture, and Hawaiian Affairs