Frequently Asked Questions (FAQ)
Regarding the Aina Koa Pono Ka‘ū Energy Farm
Project Overview/Key Discussion Issues
What Technology will be used for producing biofuel?
We will be using an established technology called microwave thermal depolymerization which has been used in the food processing and pharmaceutical industries for 50 years. It has only recently been applied to making bio-fuel. This technology applies heat and pressure to organic material to produce biofuel and biochar.
Where is the project located?
The project will be located in the Ka‘ū District on the Big lsland of Hawaii. The location is on Camp Meyer Road on property owned by the Olson Trust approximately 1.5 miles from the town of Pahala.
Does the proposed project require an Environmental Assessment (EA) or Environmental Impact Statement (EIS)?
There are no current “triggers” that require an Environmental Assessment (EA) or Environmental Impact Statement (EIS), but we will comply with all Federal and State requirements.
Will there be a smell from the plant or processing?
The only smell created by this process will be that of “sawn lumber” which is comparable to the smell of a lumber yard. There will be no gasoline or chemical smells associated with the plant or processing.
Will AKP’s facility process municipal solid waste?
No, our feedstock will be exclusively biomass derived from growing plants and other vegetative matter.
Will HELCO’s 20 year contract with AKP to purchase bio-fuel take reduce the potential for geothermal, wind or solar?
No, HECO is expanding its geothermal work and continues to work with new solar installations on a daily basis. The current total energy used by all of the Hawaiian Islands far exceeds all the current and planned Hawaii renewable projects combined. Even with solar and geothermal resources, a facility like Keahole will be used as a back up to assure the continuous flow of power to the residents of the Big Island. The only question is whether Keahole will be operated using fossil diesel or renewable diesel. If, after the development of geothermal, biomass, and solar energies, less power from Keahole is needed, and therefore less bio fuel, any renewable liquid fuels can be transported anywhere in Hawaii. We feel our project increases the fuel independence of Hawaii by directly reducing foreign oil imports. AKP is just one solution of many. The fuel could also be used for transportation purposes.
What are the risks for HELCO/HECO and its consumers if AKP fails to develop the project or deliver per the specifications within the contract? What if AKP’s expenses are higher than projected or the price of oil goes up?
None. The contract contains specific development milestones and details on performance and HELCO is only obligated to purchase fuel from AKP if all of the criteria are met. The price that HELCO will pay is fixed for 20 years and is in no way tied to AKP’s operation or the price of oil.
The price that HELCO will pay for bio-diesel is currently higher than what it pays for petroleum based diesel. Does this mean that AKP’s process is not efficient enough to be competitive in the market?
No, the price that AKP required for its first plant is affected by the level of return needed by project investors to entice them to provide funding. As AKP develops additional facilities the price will drop considerably as the engineering costs will have already been incurred and the risk to investors lowers.
It is estimated that the price that HELCO will pay for bio-diesel supplied by AKP will increase an average rate payer’s bill on the Big Island and Oahu by $1.75-$2.10 per month. When are consumers likely to see an increase and will consumers be funding the development of the project?
Any increase will not be seen until HELCO actually receives fuel from AKP which is estimated to be in early 2014. Consumers are not paying for the development of the project. An estimated $400 million will already have been spent by AKP and its partners to build and operate the facility.
Will this first project lead to other projects statewide and will there be other buyers of AKP’s fuel besides HECO?
AKP sincerely hopes that this project will lead to other projects on other islands as the public and major land owners recognize the potential of the technology. AKP plans on developing fuel for the transportation industry. Hawaii currently imports 2 billion gallons of crude oil of which approximately 20% is used for on-road transportation.
Is there a potential to use this for ground and air transportation?
Yes. The process will produce “synthetic diesel” that can be used for electric generation, transportation and similar uses. In addition the process also produces lighter distillate that can be processed to jet fuel and gasoline
Will AKP allocate land for food production?
The Edmund Olson Trust has carved out acreage along Wood Valley Road as a diversified agricultural area in conjunction with the biomass production on former cane fields that have long been fallow. Currently, there is a wide variety of plants cultivated under land leases. About 15 acres of sweet potato production has been recently planted in addition to taro, kukui nuts, bananas, strawberries, a wide variety of lettuce and an assortment of other vegetables including squash, coffee trees, and soon peanuts.With the beginning of AKP operations, we look forward to supporting the diversified agriculture efforts of our joint venture partner, the Edmund Olson Trust, and helping to achieve Hawaii’s dual goals of increased energy security and self sufficient food production.
How does the project create jobs for people in the community?
We project that approximately 150 to 200 permanent jobs will be created by this project. Additionally, 300-400 construction jobs will be created during development.
Why don’t you use technology like solar, which has less demand on land resources?
We are not considering the use of solar power generation in our projects. Solar power is not economically feasible without significant government subsidy, and more importantly, solar power will not produce liquid fuel for transportation or electricity generation in the HELCO plants. HECO, on the other hand has solar programs in place, but AKP will not be participating in that area.
Is there a project timeline available?
Yes, a general timeline would consist of the following:
Develop design, obtain permits, and equipment purchase Through to July 2012
Construction January 2012 – Dec 2013
Full operations Jan 2014
Technology
What is biomass?
Biomass is any carbon based organic material that is comprised of large complex hydrocarbon molecules and generally exists as a solid at Normal Temperatures and Pressures (NTP) – typical examples include “Green Material” such as lumber, grasses, and bushes, plastics, synthetic and natural fabrics like nylon, polyester ,cotton, paper and cardboard products, food waste, and tires.
AKP’s Kau project proposes to process many different types of biomass including invasive species, hurricane debris, yard waste, and biomass crops.
What is Microwave Depolymerization (MWDP)?
MWDP is an acceleration of a natural decomposition process when large complex hydrocarbon molecules are broken down into smaller sizes that exist as liquids at Normal Temperatures and Pressures (NTP). Heat from the microwave process is what accelerates decomposition of materials.
Why are microwaves more efficient for heating?
Microwaves heat from the Inside out – as opposed to other heating methods which rely on heat transfer from the outside in, plus MW ovens have no emissions. Also they work effectively at much lower temperatures than traditional heating methods.
How does MWDP compare with other processes?
Typically, comparing 3 renewable energy technologies:
- H-Power ONLY generates electricity at 800 to 900 kWhr per ton
- Gasification/Fisher Tropsch ONLY generates fuel at an equivalent 1,555 kWhr/ton.
- MWDP has 3 products – fuel oil, char and gas and total energy output is 3,496 kWhr/ton
In terms of gallons per acre, production varies but MDWP generates 3,000-4,500 gallons per acre depending on location, soils and selected crops. Other processes such as palm oil conversion generate 500-600 gallons per acre, gasification/F-T produces 1,500-2,000 gallons per acre, and algae is theoretically capable of producing 5,000 or more gallons per acre, but has a number of years for its commercial development.
At what temperature does MWDP work?
MWDP works at around 285-320 degrees Celsius – which is much lower than other heating methods which operate at 750-800 degrees Celsius – and therefore the MWDP process produces no NOX, dioxins or furans which are considered hazardous materials.
What is the quality of the fuel?
The MWDP process generates a synthetic crude oil that has properties very close to regular diesel and can be processed further to produce a diesel fuel with a BTU value of approximately 140,000 BTU/gallon, and that meets ASTM specification D 975 for No 2 Low Sulfur fuel.
Can the process be modified to produce gasoline and jet fuel?
The synthetic crude is a mixture of hydrocarbons including gasoline and kerosene (jet fuel) fractions. The majority of the mixture is in the diesel fraction, through distillation and close monitoring of the microwave process the majority fraction can be shifted to kerosene or gasoline providing feed for the jet fuel and gasoline process lines.
The freezing point of the fuels that are generated from the MWDP process meet the maximum FP limits for JP-8 and JP-5, which make it an attractive alternative to fossil fuels..
What are the physical properties of the fuel – is it corrosive?
The fuel produced compares with diesel and other hydrocarbon fossil fuels. It may be considered a “drop-in” fuel to replace existing fossil fuel products. The microwave process breaks down the oxygen bonds which in turn reduces the acidity of the fuel, and its hygroscopic (water absorbing) properties and generates a less corrosive fuel.
How will the new fuel impact emissions?
In general, when growing biomass for conversion to fuel the US DOE allows the sequestration of CO2 to be included in the balance. Consequently the reduction in CO2 emissions will be of the order twelve times (ie 1/12th of current emissions).
With conversion of plastics and other MSW products the reduction in GHG and CO2 emissions is about one quarter, plus the reduction in volume disposed in the landfill.
The molecular structure of the fuel produced also has fewer saturated bonds which reduces particulate emissions and produces a cleaner burn, and the increased energy value of the synthetic diesel reduces the consumption approximately 10% on a gallon for gallon basis.
What other benefits can be derived from MWDP process for generating fuel?
CHAR AS A PRODUCT - The char produced as a by-product has intrinsic value as a soil amendment after composting. Initial inquiries indicate it will have considerable economic value as well as an admixture for potting soils and fertilizers. When used in this manner the char has an added environmental value as 100% of the carbon content will be returned to the soil.
EMISSIONS - The process itself has no emissions since 100% of the vapor produced is captured for processing. Traditional heating of biomass and crude oil use external heat from “tail gas” which in practice has extremely high flue gas discharges.
OPERATION AND MAINTENANCE - The configuration of the process plant improves and simplifies plant operation and maintenance. With multiple in lieu of single trains maintenance can be scheduled without interrupting production and a variety of feed stocks can be processed simultaneously.
What independent information is available about the viability and safety of the proposed biofuel production technology?
Microwave technology has been used in the food processing and pharmaceutical industries for the past 50 years. Our technology is no different than that technology and we will use the same safety and operational precautions as used in those industries.
Does AKP’s process produce pyrolysis oil?
No, pyrolysis oil is derived in an oxygen starved process, meaning there is some, but minimal oxygen present. The pyrolysis oil process works at over 500°C, and creates different chemical reactions to occur during the gasification phase of Pyrolysis resulting in highly oxidative and unstable pyrolysis oil that is very corrosive. The AKP gasification process occurs in an oxygen free environment at much lesser temperatures, (300°C) and includes nitrogen flooding and the addition of hydrogen. The resulting renewable diesel is stable, non-oxidative, is non-acidic with a ph of approximately 8 and has an average btu value of 125,000 per gallon which is much closer to at the pump diesel of 128,000 btu per gallon. Furthermore, after processing, btu values will be higher than pump diesel. All of the analysis shows the AKP process creates an oil that is much closer in characteristics to fossil diesel than a pyrolysis oil.
Feedstock Supply/Farming
AKP appears to have a lack of expertise, specifically agronomists.
We are bringing on board a number of subject matter experts. We are working with the Hawaii Agricultural Research Center in developing optimal varieties of feedstock for our plant. We have retained John Carroll, an agronomist and Mike Thieman, an expert in sustainable biomass production, to assist us in the agricultural aspects of our project. We have also retained John Cross and James Cuddihy, both of whom were involved in the sugar business in Ka’u for many years with the Ka’u Sugar operation and will provide significant insight. We are prepared to retain other expertise as required.
Does AKP have an agricultural plan for the project.
AKP has a 3 step plan that is being developed and will include significant input from local farmers and ranchers. AKP also has a written protocol that has been agreed to with the Hawaii Islands Land Trust that guaranties there will be environmentally sound land management practices followed.
Why has AKP proposed several different types of grasses to use as feedstock?
We want to select a non-invasive grass that meets the energy needs of AKP and the nutritional needs of local ranchers. Test plots will determine optimal varieties and methods. Existing invasive and cultivated biomass will gradually be harvested while other grasses and trees are cultivated where appropriate.
Natural Resources/Environment
What is the environmental impact?
The project in and of itself benefits the environment by reducing green house gases and CO2 emissions. A model used by the U.S. Department of Energy called the GREET model finds that the production of biodiesel as well as the use of biodiesel produces less GHG and emissions than petroleum and will result in a net reduction through the growth of biomass. There will be no SOX, NOX, heavy metals, or particulates from our facility. The carbon dioxide from our facility will be absorbed by the biomass feedstock crops.
How does burning biofuel reduce greenhouse gases?
Biofuels burn cleaner than petroleum fuels, producing far less green house gases than petroleum fuels and have less particulates released into the air. Biofuels also provide a “carbon sink” advantage by growing crops, which absorb carbon dioxide. (U.S. Dept. of Energy)
What crops will be grown to supply the facility with biomass?
As of right now, sterile napier grasses, Christmas berry and eucalyptus trees will be used. There is the possibility that other grasses may be considered; if that is the case only those that are classed as non-invasive will be pursued.
Other than grown crops, AKP will consume invasive plant species to Hawai‘i, that already grow in Ka’u - such as Christmas Berry and Guinea Grass.
AKP will work closely with the Department of Agriculture, University of Hawaii, and others to provide a means for disposal and eradication of invasive species of plants in Hawaii. Prior to our Ka’u Energy Farm, their effort to eliminate or even reduce alien plants was limited because there was no means to destroy the plants once they were collected. Our facility can provide the means other than herbicides and burning.
How much land are you using? Are you cutting down forests?
AKP has leased 12,800 acres from the Olson Trust and the Mallick family. As such we are only using about 1/10th of the agricultural land in Ka’u – and NONE of the conservation forest land.
How much fuel per acre will you produce?
Our facility will produce between 3,000 and 5,000 gallons per acre per year, depending on the feedstock.
How do you plan to water your crops, given Hawaii has been in drought conditions?
The region has successfully grown sugar cane without additional irrigation. We do not anticipate irrigation for our sterile napier grass since guinea grass has proven to thrive without it. However, should a need arise; there is a reservoir available on the leased property.
Have the crops and their management regimes (e.g., mechanical harvesting) been tested in a range of site, drought, and air quality conditions in Ka‘ū?
The existing land has already demonstrated the ability to grow grasses. Selection of the best grasses is underway and will be an ongoing program throughout the life of the project
Can the crops produce the volume of biomass needed to produce 16 million gallons of biofuel per year?
Yes. The biomass volumes needed can be produced from less than the total acres leased by AKP..
How might the crops and their management impact Ka‘ū’s other agricultural activity such as coffee growers, vegetable farms, cattle ranchers, forests, and coastal areas?
Our feedstock crops should have no impact on other agricultural activity, forests and coastal areas.
Our facility should be beneficial to coffee growers, macadamia nut farms, and cattle ranchers. We can use the waste products from their operations e.g., macadamia nut hulls, old non productive trees, coffee fruit pulp. We are looking to partner with cattle ranchers to develop dual land use in which the rancher and our biomass production can exist side by side. Various sterile grasses are being considered which grow extremely quickly for available cattle forage without impacting the production needs of the local ranchers.
Cattle farmers will experience some impact from the additional management of relocating cattle in and out of land for grazing (i.e. between crop cycles), but it will be minimized where possible. Harvesting some of our grasses early can provide a nutritious hay forage if baled and delivered to the ranchers. .
What other inputs will the crops need (e.g., fertilizer, pesticides, etc.), and how will their use be managed?
We will need minimal fertilization with the grasses which we expect to plant. We can also use some of the composted biochar and other local agricultural wastes as a soil amendment. This will allow much faster growth of our feedstock. We do not anticipate the use of pesticides on this project.
Community
Assuming some of the construction workers come from off-island (or from outside Ka‘ū and don’t want a long daily commute), where will they be housed? And how will that impact the affordability of housing for local families? How will other impacts of a significant, temporary increase in population be mitigated?
We will engage local sources to the maximum extent to perform the construction. This project is small enough that the number of people potentially brought in from outside the island to assist in construction could be housed locally and would not increase the population in any significant way. AKP also plans to hire Big Island based contractors for much of the construction work.
How does the project affect home values?
We are not able to predict the impact on the housing market, however we may expect to see a short term gains in home values during construction which will level off after the facility is in operation.
What roads will be used, what improvements will be required, and what arrangements are being made with the roads’ private owners?
Private roads are in the lessor’s lease and AKP will maintain those roads. AKP plans to develop a Private new access road connecting Wood Valley Road with Highway 11, to by-pass the Pahala community
During both construction and operation, how much traffic, noise, odor, waste, and emissions will be produced, and how will they be mitigated?
Typical for a project of this size – Best management practices will be used as required by permits. It is our intention to set the biorefinery back from Wood Valley Road and expand a natural rise to partially block the view of the facility from the road.
How will the biofuel be safely stored and transported?
We will design and construct fuel storage facilities as currently done in the U.S. The permitting process will assure compliance with all safety considerations, including county fire department approvals.
Will any of the energy produced be used or available in Ka‘ū?
Yes.
What impact will the project have on Ka‘ū’s rural lifestyle?
It is the intention of AKP to enrich Ka‘ū, be a good neighbor and impact the local community in the least intrusive manner so as to not interrupt or change its lifestyle.
What community benefits is AKP willing to commit to communities in Ka‘ū? How will the project’s economic benefits be distributed?
AKP is deeply committed to community giving in Ka‘ū. Although it is premature at this point in the project to identify specifics, AKP is committed to giving back to the community and is open to receiving community input for future consideration.
How many of the construction and operations jobs will be filled by residents of Ka‘ū and Hawai‘i Island?
We hope to fill as many of the jobs available by local hires. It does not make sense to bring in outside personnel unless the capability is not available locally.
What training, education, and workforce development will be provided to prepare local residents for the available jobs?
We are already meeting with Big Island Labor Alliance, Work Hawai’i, and the University of Hawai’i. We will work with the County Planning Department, the local high schools, and unions to develop training programs to fill our needs.
Economy
Is the project economically viable?
Yes.
What is the price of biofuels being sold to HECO?
This is proprietary information under the terms of the contract with HECO as they are currently negotiating other bio-fuel contracts.
What are the basic assumptions of AKP’s finance and business plans?
To sell fuel to HELCO and to grow our own feedstock to contain costs. We have a 20-year contract for our biofuel.
How will other sectors of the local economy, like tourism, be impacted?
The local economy should benefit greatly from more locally available high paying jobs, creating new businesses locally to support the additional jobs created, and to bring in tourists who will be visiting Ka’u to see how our plant operates. Our plant will be hidden from the view of residents to the greatest extent practicable. Our plant will have no negative effect on Ka’u’s tourism economy.
Will the project result in greater economic diversity or dependence?
Economic independence will be a side benefit as other service industries spring up in Ka’u. As Ka’u is primarily an agricultural area, by adding a new type of facility gives greater diversity. This also means that it will make Ka’u more resilient to unexpected changes. For example, currently a poor crop of macadamia nuts or coffee depresses Ka’u because there is little else generating the economy. Once AKP’s facility is in place even an exceptionally dry or wet season will not affect the generation of biofuel and that will help keep the local economy regulated.
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About ‘Āina Koa Pono
‘Āina Koa Pono is a Hawai‘i-based company working to develop and implement new energy solutions to reduce the state’s reliance on fossil fuels. ‘Āina Koa Pono means “for the good of the land” in Hawaiian, the company specializes in design and construction of integrated processing facilities which will work with local businesses to produce bio-feedstocks to create energy products such as biofuel, electricity and gasoline. The ‘Āina Koa Pono team consists of several companies committed to the creation of clean, renewable energy in Hawaii, including MELE Associates, Inc., Eichleay Engineers of California, Inc., TekGar, LLC and Bionics Fuel Technologies AG.
