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OUR ADVERTISING CAMPAIGN Why is Hawaiian Electric Company running this ad campaign? BIOFUELS What are biofuels?Liquid fuels made from organic matter are called biofuels. One common biofuel is biodiesel which can be made from waste restaurant cooking oil or from vegetable oil from a variety of crops, such as soy, canola and palm. Biodiesel can be used in pure form or any blend in diesel engines, including vehicles and electricity generators. Ethanol (also known as ethyl alcohol or grain alcohol, the base of many alcoholic beverages) can be made from a variety of crops, including corn, sugar cane and sorghum. Ethanol (formerly known as gasohol) can be mixed with or replace gasoline in cars up to 85 percent and can be used in electric generators. What are the benefits of biofuels? Using ethanol or biodiesel to create electricity can replace imported fossil fuels with homegrown “local” energy. It can create jobs here in agriculture, manufacturing and other support services. More agriculture can protect open space by using it productively for a green crop, like sugar, sorghum, eucalyptus or other biofuel feed stocks. It will keep more money at home instead of sending it out of state to buy fossil fuels and it will grow a more sustainable economy. Also, biofuels burn more cleanly than most fossil fuels, helping to keep the air even cleaner. Because they come from recently grown crops, biofuels are close to "carbon neutral," meaning they do not contribute to climate change and global warming as fossil fuels do. They have fewer emissions while they are burned and while they are growing they are actually taking carbon dioxide out of the environment. Why did Hawaiian Electric Company announce a commitment to use 100-percent biofuels to power its new plant? Hawaiian Electric Company wants to create a firm market demand that will help encourage the development of a home-grown agricultural energy industry – both for transportation and electricity generation. At the urging of the Hawaii Consumer Advocate -- and others in the community, including the Mayor of the City & County of Honolulu -- Hawaiian Electric Company committed to fuel the new plant (a 110-megawatt peaking unit to be built at Campbell Industrial Park by mid-2009) entirely with biodiesel. And we received approval from the Hawaii Public Utilities Commission to do so. After a competitive bidding process, Hawaiian Electric Company selected Imperium Services, LLC, an affiliate of Imperium Renewables Hawaii, to supply biodiesel for the unit through 2011. The contract was submitted to the PUC for approval in October 2007. Is anybody in Hawaii producing local biofuels? No ethanol is currently produced locally; several companies had planned to build ethanol facilities and Gay and Robinson plantation on Kauai is planning to use sugar cane to produce ethanol. With ethanol prices very low at present, all these plans are on hold. A Maui-based firm, Pacific Biodiesel, produces biodiesel in Hawaii from waste restaurant cooking oils and on the Mainland from other feed stocks, including from soybeans in Texas through a partnership with singer Willie Nelson. And there has been considerable activity lately on the potential for developing agricultural energy in Hawaii. This includes, among others, a high level meeting hosted by Governor Linda Lingle; a "grass-roots" Hawaii Biofuels Workshop sponsored by the Agricultural Leadership Foundation of Hawaii, Hawaiian Electric Company and others. The Hawaii Energy Policy Forum at the University of Hawaii and State Department of Business, Economic Development & Tourism developed a report to the Hawaii Legislature entitled "Biomass and Biofuels-to-Power," being prepared by the Rocky Mountain Institute, a leading energy think tank. In addition, among other business activities, Hawaii's three largest landowners -- Grove Farm Co., Maui Land & Pineapple Co., and Kamehameha Schools -- formed Hawaii BioEnergy LLC to research the viability of a large-scale biofuels industry in Hawaii. At least three research centers – the University of Hawaii at Manoa College of Tropical Agriculture and Human Resources, the University of Hawaii at Hilo College of Agriculture and Forestry Resources Management and the Hawaii Agriculture Research Center (formerly the Hawaiian Sugar Planters Research Center) are doing research on jatropha and other possible plants that could be grown in Hawaii to create biodiesel. In addition, the University of Hawaii at Manoa School of Ocean and Earth Science and Technology is doing research on algae as a biodiesel feedstock. In February 2007, Hawaiian Electric Company and BlueEarth Biofuels, LLC announced plans to build a biodiesel processing plant at Waena on Maui. The plant, scheduled to be in service in 2009, would supply green, renewable biodiesel fuel to power Maui Electric Company’s diesel generators. At present, Maui Electric gets about 85 percent of its energy by burning petroleum based diesel. It is hope that this will be replaced by biodiesel and eventually biodiesel from feedstock grown in the Hawaiian Islands. Some critics are saying ethanol is not commercial feasible. Why are you considering it? Most of the criticism of ethanol focuses on corn-based ethanol which returns only a relatively small additional amount of energy above what goes into the process. However, technological advances are improving the efficiency of all kinds of ethanol production. Sugarcane (which is used very successfully in Brazil), sorghum and other crops are more efficient producers of ethanol than corn. In addition, a new technology called cellulosic ethanol promises to provide even more efficient energy through the use of agricultural wastes and plants that can grow on land that is poor or useless for farming. We believe that biofuel -- either ethanol or more likely biodiesel -- has real potential for Hawaii because it can help reduce our use of fossil fuels in both electrical generation and transportation. Plus it can provide other public benefits like greening open space. Its applications are growing around the world and this solicitation is an important step in building the market for Hawaii. Would it be possible to move biofuel around the state? The ideal would be for biofuel to be used on each island to be grown and refined on that island. For example, Hawaiian Electric Company is working with BlueEarth Biofuels, LLC to develop and operate a biodiesel processing plant on Maui by 2009 in order to supply Maui Electric Company’s diesel generators with green renewable biodiesel. While initially the feedstock would be imported, the future goal is to use Hawaii-grown feedstock derived from sustainable practices. In the long term, biofuel could be produced on the Neighbor Islands to be used on Oahu, which has the greatest demand for energy but very little land still suitable and accessible for agriculture. How do biodiesel and ethanol compare for electricity generation? There is a large world market for ethanol in existence; the market for biodiesel is in the early stages of development. On the other hand, biodiesel produces more energy than ethanol in the same quantities. What are the advantages of biofuel for electricity generation? Biofuels (ethanol and biodiesel) are a source of FIRM renewable energy that will help us reduce our consumption of fossil fuels and can help us meet our goal of 10% renewable energy for electricity by 2010 and 20% by 2020. What are the challenges of using biofuels for electricity? From an operational standpoint, the utility needs to consider the impact of using pure ethanol or biodiesel or possible blends and the volumes that will be needed to operate the new generating unit or existing fossil fuel units with biofuel. From a financial standpoint, we need to get a better idea of how much this will cost. We are all united in the notion of creating the best possible market in order to make the product as competitive as possible. The RFP recently issued for biofuels should help understand the possible costs. What do environmental leaders and organizations say about biofuels? Among supporters of biofuels are: * Amory Lovins, founder of the Rocky Mountain Institute; * Natural Resources Defense Council ("One of the nation's most powerful environmental groups," says The New York Times) and its best known advocate, Robert F. Kennedy, Jr.; * Institute for Local Self-Reliance; * Union of Concerned Scientists ("the leading science-based nonprofit working for a healthy environment and safer world. UCS combines independent scientific research and citizen action to develop innovative, practical solutions and to secure responsible changes in government policy, corporate practices, and consumer choices."); * Energy Future Coalition (a broad-based, nonpartisan alliance that seeks to bridge the differences among business, labor, and environmental groups and identify energy policy options with broad political support); * Christopher Flavin, president of the Worldwatch Institute (it should be noted that the founder of the Worldwatch Institute, Lester Brown, has raised cautions about the competition between food and fuel for land and other resources). What feed stocks can be used for ethanol? A variety of biomass could be feed stock for ethanol. The choice of biomass crop, crop yields, and delivered costs are highly site-specific. For example, some crops do better in sunnier, warmer locations while others flourish in cooler, wetter conditions. Although grasses generally achieve higher dry matter yields per acre per year than do trees, in specific locations (the eucalyptus plantings in Hamakua, for example) the trees out-performed the grasses. This illustrates the importance of using these estimates as a general guide from a statewide perspective rather than as an absolute relationship for all sites. What is Hawaiian Electric Company’s Biofuels Program? Our goal is to position Hawaiian Electric Company utilities (including Maui and Big Island) to use biofuels in existing and planned generating units when supplies become available; and to encourage producers to make supplies available. For that reason, Hawaiian Electric Company has a multi-year, multi-phase program to explore the use of biofuels in all our generating units. How much biodiesel is available in Hawaii? Biodiesel supply here is limited. Less than one million gallons of biodiesel from waste restaurant cooking oils is currently produced in Hawaii with a potential of about three million gallons annually. Does Hawaiian Electric Company use any biodiesel? Yes, the Hawaiian Electric companies use a biodiesel blend in all diesel vehicles in our fleet. Maui Electric Company also uses biodiesel in the start up and shut down of two of its diesel generating plants. Is Maui looking at additional biofuels? Yes, Maui Electric Company has hired a Mainland consultant to study the use of ethanol in their units. That process is just beginning. In the meantime, Hawaiian Electric Company and BlueEarth Biofuels LLC announced plans to build a biodiesel processing facility on Maui to supply green renewable biodiesel to power Maui Electric’s diesel generators. BlueEarth Biofuels, LLC – a developer of power and renewable energy projects based in Texas and Arizona – will develop and operate the facility which is scheduled to come into service in 2009. Maui Electric is examining the possibility of converting all of its generators at Ma‘alaea that use oil-based diesel to biodiesel, ideally from locally grown crops. How about biofuels for other existing fossil fuel units on Oahu, Maui and the Big Island? Hawaiian Electric Company is studying the use of biofuels in other units that presently use low sulfur fuel oil, as well as diesel. Back to Top SEA WATER AIR CONDITIONING What is SWAC?SWAC is a system that pumps cold sea water via a deep-sea pipeline to a cooling station on shore. In the station, the sea water’s coldness is transferred to fresh water which circulates in a closed loop pipe system to customer buildings for cooling. The seawater and fresh water never mix. And the warmer seawater is returned to the ocean through another pipe and diffuser located at a shallower depth. Is this technology new? No. Sea water air conditioning is already used at the Natural Energy Laboratory of Hawaii Authority in Kailua-Kona on the Big Island, using the deep sea pipelines originally installed to test Ocean Thermal Energy Conversion. Toronto, Canada is developing a district cooling system using cold Lake Ontario water. The University of Hawaii’s John A. Burns School of Medicine in Kakaako uses cold well-water to reduce its air conditioning costs. Sweden is a world leader in SWAC development. What are HSWAC’s plans? Honolulu Seawater Air Conditioning LLC is planning 25,000-ton systems for downtown Honolulu and for Waikiki. You can learn more about HSWAC and their calculations for how much electricity would be saved by visiting their website. (honoluluswac.com) Is SWAC environmentally beneficial? Reducing the amount of fossil fuel needed to provide air conditioning to large buildings would be beneficial. Also SWAC systems eliminate the need for cooling towers and, thus reduce the use of potable water and the use of toxic chemicals as well as reducing sewage output through our sewage system. Hawaiian Electric Company has written a letter to potential HSWAC customers. What is this all about? Hawaiian Electric Company is urging prospective users of Honolulu Seawater Air Conditioning (HSWAC) -- that is building owners and managers in downtown Honolulu and Waikiki -- to carefully consider utilizing deep seawater cooling, a renewable source of cooling that offsets the need for air conditioning for cooling. Potential customers must review SWAC on its merits based on their particular needs, but Hawaiian Electric Company urges that potential customers be open and well-disposed to the idea. Why are you endorsing HSWAC? Hawaiian Electric Company supports HSWAC because it is good for Hawaii. HSWAC would help reduce Hawaii’s dependence on imported fossil fuels, help meet Hawaii’s renewable energy goals and would be environmentally beneficial. For our customers it should result in a long-term savings in the cost of cooling. Air conditioning is a big source of demand for electricity. It is estimated that half the load in Waikiki goes for air conditioning. Won’t Hawaiian Electric Company be losing business if SWAC succeeds? For Hawaiian Electric Company, the possible loss of business will be balanced by helping create generating stability due to reduced loads in the heavy downtown and Waikiki areas and by offsetting the growing demand for electricity. The longer we offset the growing demand for electricity with demand side management, efficiency and renewables, the longer we can delay adding new generation capacity, and especially fossil fuel capacity. This saves money for everyone and provides more time to find and perfect alternatives to fossil fuel. Is it unusual for a publicly owned electric company to advocate a system that could take some of its business? Yes. William M. Mahlum CEO of Honolulu Seawater Air Conditioning, LLC, said, “In the 27 years I have been active in energy matters, I am not familiar with any investor-owned utility, such as Hawaiian Electric Company, that has recommended to its electricity customers consideration of an independent renewable energy service… (HECO’s) support is concrete evidence of an unmatched renewable energy commitment from a large electric company.” How strong is Hawaiian Electric’s commitment? We have pledged that Hawaiian Electric will be the first or among the first to sign on with HSWAC and incorporate sea water air conditioning in our historic headquarters building at 900 Richards Street. Back to Top HAWAII’S ENERGY FUTURE HECO talks about a ‘mixed plate’ of resources to meet Hawaii’s energy future. What are you referring to?To power our future, and increase our security, we need a diversity of resources. It is not “either-or” but “all of these.” It’s like a mixed plate lunch that includes a variety of choices. Just one will not do. On our “mixed plate” includes:
“Firm” power is available reliably on demand, whenever needed. “As available” power is not accessible all the time. Renewable energy sources such as solar and wind are good examples of “as available” power since they only provide electricity when the sun shines or the wind blows. Back to Top NEW POWER PLANT FOR OAHU If you’re promoting renewable energy, why do you need a new power plant on Oahu?We need a diversity of resources to meet Oahu’s energy needs – it’s a case of “all of these,” not “either-or.” We have to simultaneously get results from aggressive energy conservation and efficiency, renewable energy and other technologies. There is no one solution. It takes all of these actions to keep the lights on. Given that demand for power at peak times is growing and existing generators are getting older, some additional firm generating capacity via power plants is needed to provide 24-hour reliable electric service to Oahu customers. Even then, the proposed plant will be different than anything we have built before. We selected Imperium Services, LLC, to supply biodiesel for the new unit through 2011, and the contract was submitted to the Hawaii PUC in October 2007 for approval. Imperium has agreed to preferentially purchase sustainably-grown Hawaii feedstocks where available, making this “green” plant the first in the United States. If a power plant isn’t built by 2009, will Oahu experience rolling blackouts? Day-to-day, Hawaiian Electric Company has enough capacity to meet normal demand through 2009. However, Hawaiian Electric Company’s generation reserve margins – the capacity to meet needs during emergencies, for example, when power plants are out of service unexpectedly – are already below desired levels. If for any reason the new plant is not completed by 2009 that “power crunch” will worsen. This doesn’t guarantee rolling outages, however the likelihood of generation-related outages will increase. Back to Top GLOBAL WARMING
What is Hawaiian Electric's position on global warming? To effectively address global warming, actions addressing all contributing sources must be taken with priority given to those which provide the greatest benefit for the costs involved. To be successful, the response to global warming requires commitment by private sector businesses, all levels of government, and every member of the public. At Hawaiian Electric, we remain committed to taking direct action to mitigate the contributions to global warming from electricity production. Such action has and will continue to include promoting aggressive energy conservation and transitioning to clean, efficient and eco-effective energy production in all markets that we serve. ENERGY CONSERVATION PRACTICES
What is Hawaiian Electric doing to help conserve energy? FACTS AND FIGURES
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•Energy Conservation Practices |
