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The Honolulu Advertiser
Posted on: Tuesday, November 14, 2006

COMMENTARY
Hawai'i has fuel to power energy revolution

By Mike May

Brazil has developed a diesel fuel mixed with vegetable oils that will reduce its need for imported diesel. Hawai'i can make similar gains.

Associated Press

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It is an often repeated adage that the Chinese character for "crisis" is the same character for "opportunity." What we have in energy use in Hawai'i is a great opportunity to demonstrate the power of that adage. Hawai'i can lead the world in the area of renewable energy and the reduction of greenhouse gas emissions and in the process become a vibrant and healthy economy with a dramatically improved environment. Dreaming? Not from where we sit.

You have all heard that Hawai'i is more oil dependent than any other state. That's very true. What is not looked at is that other states have equally large dependencies on other fuel sources. A number of states have very large dependencies on coal, on natural gas, on nuclear power or on hydropower from dams. The fact is that those dependencies are very hard to change and cannot easily be made environmentally friendlier. They are what they are and their impact on their environment will remain the same for many, many years to come.

Our path can be dramatically different. Ironically, in our dominant use of oil lies Hawai'i's opportunity to alter the equation. What we have the opportunity to do in Hawai'i, unique in the United States, is to substitute fuels.

Crisis to opportunity. Oil to biofuels; biodiesel and ethanol.

We can move our power plants from using oil to using biofuels.

We can move our cars from 10 percent ethanol, which we already have, to 85 percent ethanol, which Brazil has done.

We can take one of our greatest vulnerabilities, an oil-based economy, and turn it into one of our greatest assets — a home-grown (pun intended) agricultural energy-based economy for Hawai'i. No other state has this opportunity and it will be a disgrace if we do not take advantage of it.

So what will it take to make this future happen?

  • We need to construct the state's first biofueled power plant in Campbell Industrial Park. We have committed to the state and to the mayor that we will make it 100 percent biofueled as soon as it can be and that it will be at least 50 percent biofueled in any event, and with appropriate approvals it will be on line in 2009. This commitment will help drive the market for biofuels in Hawai'i.

  • We need to fuel switch the diesel units used for power generation on the Neighbor Islands from oil-based diesel to biodiesel. This transfer may be the easiest to plan but it will still need significant regulatory approval.

  • We need to move to fuel flexible vehicles so that E-85, cars that use a fuel-based 85 percent on ethanol, can become an everyday part of life. This will require flexible fuel vehicles being imported to Hawai'i, service stations that will welcome flex fuel vehicles, and whatever combination of tax incentives, and state commitments necessary to make this a reality.

  • We need to move toward biofuels use in our non-diesel units. This will be a much more complex task than switching the diesel units but it needs to be done. It may take new equipment and facilities. It will take time. It could even accelerate the need for additional power plants (though the new ones would be biofueled and cleaner from the start).

  • We need to provide a proper set of market signals, regulatory and financial, to encourage the replanting of our lands to agricultural use, and specifically to fuel crop use. This needs to be government's greatest contribution.

    We need tax incentives for growers and processors; tradeoffs for the urban development of acreage in the form of long-term commitments to agricultural use as a condition for the urbanization of any land; resolution of water issues; the rebuilding of the irrigation systems; and long-term commitments to take the products for use in our transportation and power sectors.

  • We need to understand that these commitments must be made for the long term. We cannot allow a short-term fall in oil prices to get us off course.

    Hawai'i needs to lead the U.S. and the world in committing to a simultaneous long-term commitment to substituting our oil-based fuels for biofuels, and especially for using locally grown biofuels.

  • And in all of this, we need to maintain and expand our commitment to other forms of renewable energy: wind farm, solar, geothermal, waste-to-energy, pumped hydro, wave and ocean power. We need a full portfolio of resources, each of which can play its part in our state's future.

    With that, we also need to maintain our strong commitment to conservation and energy efficiency, each of which must be part of our energy portfolio as well.

    Biofuels have been a personal dream of mine for a decade. We have worked with the University of Hawai'i College of Tropical Agriculture on crop issues and the College of Business Administration on the financial case. We have worked with the mayor and the Legislature and the administration on these issues, and we are now on the verge of making it happen.

    We need to believe in the opportunity before us, we need to believe in ourselves, and we need to act.

    We at Hawaiian Electric, Maui Electric, and Hawaii Electric Light Co. are absolutely committed to this future and will do everything we can to make it happen. Crisis to opportunity; opportunity to action.

    Mike May is president and chief executive officer of Hawaiian Electric Co. He wrote this commentary for The Advertiser.