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The Honolulu Advertiser
Posted on: Sunday, September 14, 2008

COMMENTARY
Wind project should be a boon for Isle residents

By Jeanne Mariani-Belding

Hawaii news photo - The Honolulu Advertiser

Harry Saunders | president, Castle & Cooke

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THIS WEEK

Editorial and Opinion Editor Jeanne Mariani-Belding puts Majken Mechling, executive director of the American Diabetes Association in Hawai'i, on the Hot Seat for a live blog chat Wednesday from noon to 1 p.m.

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Each week, Editorial and Opinion Editor Jeanne Mariani-Belding hosts The Hot Seat, our opinion-page blog that brings in elected leaders and people in the news and lets you ask the questions during a live online chat.

On The Hot Seat last week was Harry Saunders, president of Castle & Cooke, which is working to build the state's largest wind farm on the island of Lana'i.

Here is an excerpt from that Hot Seat session. To see the full conversation, go to The Hot Seat blog at www.honoluluadvertiser.com/opinion and click on "The Hot Seat." (Names of questioners are screen names given during our online chat.)

Debbie: Why put the wind farm on Lana'i? It's small and it seems the impact would be huge.

Saunders: 1. The western tip of Lana'i has some of the best wind resources in the world. 2. The 10,000- to 12,000-acre site is only 12 percent of the 90,000 acres on Lana'i and is remotely located some 10 miles from the nearest residence. To meet Hawai'i's energy goals, O'ahu will need to reach out to other islands to provide renewable energy resources.

Stewart: Wind turbines are a good source of alternative energy, but have you done any research into the effects it will have on the environment on Lana'i? Especially the sea birds and other birds that might fly into the windmills. What are you going to do about that?

Saunders: We've done preliminary botanical, biological and cultural studies. We have started the EIS process, which will ensure that any impacts will be identified and appropriately mitigated. We are working in collaboration with all appropriate local, state and federal agencies — including the state Board of Land and Natural Resources, the state Department of Forestry and Wildlife and the U.S. Fish and Wildlife Service. We have developed and submitted an extensive Habitat Conservation Plan — which addresses potential impacts on native bird species — and are working with appropriate agencies to complete and implement the plan.

John: How much energy will the wind farm actually produce? What are you going to do with the excess energy?

Saunders: At 400 megawatts, the wind farm could produce as much as 1.8 million MW hours of electricity per year, which can power more than 250,000 households. It would reduce Hawai'i's oil imports by over 3 million barrels a year and would reduce greenhouse gas emissions equivalent to taking 220,000 cars off the road.

Aloha_amy: Why doesn't Castle & Cooke just go off grid and power its hotels with solar energy?

Saunders: We looked into taking our hotels off the grid. But we found that leaving the grid would mean that residents and small businesses would have to bear all the costs of MECO-supplied electricity. We are the largest consumer of power on the island, so leaving the grid would mean that we would no longer be subsidizing the rates for residents. It would be damaging for the community. That wasn't acceptable to us. With the company's and the island's economic health in mind, we began exploring in 2002 renewable-energy options that would bring financial stability to Lana'i. State efforts were also under way to reduce Hawai'i's dependence on imported oil and move the state toward energy self-sufficiency.

Green_Life49: If the wind power is coming to O'ahu, what is the benefit of your energy projects for people on Lana'i?

Saunders: Our first project is for the direct benefit of the people of Lana'i. By the end of the year, 7,000 solar panels in Palawai Basin will be capturing and converting sunshine into usable power for homes and businesses across the island. The 1.5-MW solar farm, the largest in the state, is the first of Castle & Cooke's renewable-energy projects to come on line. The solar farm can supply 30 percent of Lana'i's peak energy needs and, on an annual basis, will supply 10 percent of Lana'i's electricity with energy harvested from the sun; reduce Hawai'i oil imports by 5,000 barrels/year; reduce vulnerability to oil prices, which more than doubled between early 2007 ($65/barrel) and July 2008 ($145/barrel); help stabilize energy costs for Lana'i families and Lana'i businesses; and take the first step toward a Lana'i powered with 100 percent renewable resources.

Hunter: How will the windfarm impact hunting in the area?

Saunders: The state Department of Land and Natural Resources currently leases 30,000 acres of land from Castle & Cooke for its state hunting program. In addition, Castle & Cooke has 20,000 acres of additional lands for hunting exclusively for Lana'i residents. While safety precautions will require some hunting restrictions during construction, we fully expect access to resume once the wind farm is operational. There are no plans to fence off the area or prevent access. The company is committed to supporting the cultural traditions and livelihoods of local residents. If the wind farm impacts hunting, Castle & Cooke has other options, including the ability to release other suitable lands for the state hunting program.

David: How much would this wind farm cost, how long would it take to build and will taxpayers be asked to pay for any of it? People are hurting out there and this is expensive.

Saunders: We're not certain at this time. Current estimates are in the neighborhood of $1 billion of privately funded investment. Yes, people are hurting. That's why it is necessary to move forward as rapidly as we can to relieve all residents from the ever-increasing cost of oil and electricity. In addition, the boost in employment to build such a facility will provide immediate relief to many in the construction trades.

Comma aina: Harry, I'm surprised Mr. Murdock hasn't shown any interest in being an ocean thermal energy conversion pioneer and blazing new (water) trails with OTEC. The technology could provide vast amounts of potable water for Lana'i and, sitting a few miles off the island, would have no on-land impacts. Recent comments by Hawaiian Electric officials seem to encourage ocean energy providers to come to Hawai'i. Lana'i could be a perfect fit and a fossil-fuel-free island using OTEC-supplied energy for electricity and to replace gasoline for vehicles. And Mr. Murdock's legacy would be remarkably good.

Saunders: In April of this year, Castle & Cooke, MECO and the U.S. Department of Energy joined forces to develop alternative energy options for the island of Lana'i. The ultimate goal, established in a memorandum of understanding, is to achieve 100 percent renewable electricity and transportation on the island. In the near term, the parties will be working to generate 70 percent of Lana'i's electricity from renewable energy sources, which could include OTEC. At this time, we are waiting for U.S. Department of Energy analysis of best resources to use to get to 100 percent renewable energy generation.

Tina: How exactly will Castle & Cooke make a profit off of this wind farm? You are running a business, after all.

Saunders: We plan to make a reasonable return on our investment by negotiating a rate with HECO and approved by the Public Utilities Commission with comment from the Consumer Advocate that we anticipate will be lower than current rates and will not be subject to the ever-increasing cost of oil.

Reach Jeanne Mariani-Belding at jmbelding@honoluluadvertiser.com.