Maui invests US$61 million in biofuel project aimed at green electricity production
Hawaiian Electric Co. (HECO) and BlueEarth Biofuels LLC announced that they will build a US$61/€46.4 million biodiesel refinery at Maui island's Waena power station site, with Maui Electric Co. (MECO) being the initial customer.
MECO's goal is to get all of the company’s Maalaea utility power generators off petroleum. The BlueEarth plan calls for straight burning imported palm oil, but HECO will contribute all of its half of the profits to a nonprofit public trust that will encourage the growth of local fuel crops. Candidate crops include palm oil, jatropha, kukui or coconut, the oils of which will be transesterified into biodiesel. Instead of using methanol for the production of biodiesel, locally produced ethanol will be used.
Production of the biofuel should begin in 2009. The first phase output target is 40 million gallons (151 million liters) of biodiesel per year. MECO consumed about 73 million gallons (276 million liters) last year.
Eventually, by phase three, the Waena refinery could produce 120 million gallons (454 million liters) in 2011, and there are plans to use it at Hawaiian Electric plants on Oahu and Hawaiian Electric Light plants on the Big Island.
Aside from general environmental, economic and energy security concerns, at least three factors pushed HECO and MECO towards their decision to use biofuels instead of fossil fuels:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: palm oil :: biodiesel :: ethanol :: Hawaii ::
Firstly, in 2000, the state Department of Health fined MECO for Clean Air Act violations from two of its large 12.5 MW diesel generators at Maalaea. The problem was opacity (smoke) at startup and shutdown, and the use of a small amount of biodiesel solved it.
Secondly, the state renewable energy policy that mandates electric utilities to get at least 20 percent of their power from renewables by 2020.
Finaly, a condition on the Waena power station lot requires at least half of its allowable 240 megawatts of capacity to come from renewable sources.
Current power generation on Maui from all sources – Maui Electric’s Kahului and Maalaea plants, Hawaiian Commercial & Sugar Co.’s Puunene Mill, the Kaheawa Wind and several small co-generation operators – is in the neighborhood of 240 MW. There was no requirement to start out with renewables at Waena, and MECO has been putting off developing the site to avoid the high capital costs that will include site preparation as well as installation of infrastructure.
The initial investment in a combined cycle petroleum-fueled unit – like the latest units at Maalaea – would be several hundred million dollars.
When the county approved zoning for the Waena site, there were no specific renewable sources named, but solar was one possibility. Reinhardt believes using 15 acres of the 60-acre lot for a biodiesel refinery comes within the conditions, although MECO is not adding any capacity. The lot, still in cane, is across Pulehu Road from the Central Maui Landfill.
Palm oil critics
Palm oil has its own critics. Commercial palm oil plantations were encouraged after World War II by the United Nations to provide edible fats for poor people in the tropics. This was very successful.
The palm oil plantations also became a source of oil for margarine makers and commercial bakeries in rich countries, until health fears over transfats reduced that market. Meanwhile, the search for alternatives to petroleum led not only to conversion of palm oil grown for food to oil for fuel, but to rapid expansion of palm plantations into virgin rainforests in South Pacific and Southeast Asian countries.
Reinhardt said he is aware of that criticism, and the HECO-BlueEarth joint venture will avoid obtaining oil from sources “that ravage the forest.”
The refinery is expected to require about 100 construction workers to build and about 40 workers to operate.
Reinhardt said the refinery lease, fuel agreement and generators at Waena will require approval of the state Public Utilities Commission. He said he expects the applications for the developments will be filed “soon” for start of the facility by 2009.
It will require “minimal” amounts of water and among its residual products will be ethylene. Ethylene is inflammable, and although it could not be used in diesel generators, Reinhardt said there might be enough to run a small generator.
Local ethanol for biodiesel production
The transesterification of vegetable oils can be achieved by using ethanol instead of methanol, and the hope is that local producers can supply that. HC&S has been considering using its molasses as feedstock for an ethanol plant, but no decision about that has been made.
The state now requires ethanol to be blended into gasoline. The intention was to encourage a locally-produced, renewable fuel, but so far all of the ethanol has to be imported. The state imports most of its energy, with geothermal on the Big Island, bagasse on Maui and wind turbines at several sites the primary alternative sources of electricity in the islands.
Maui is also home of the country’s first biodiesel plant using waste cooking oil, the Pacific Biodiesel facility headed by diesel engineer Bob King, who developed the technology for utilizing used cooking oil. Other biodiesel makers, including BlueEarth, rely on oil that is not contaminated by food wastes.
Reinhardt said the decision to go with BlueEarth was not a reflection on Pacific Biodiesel. “I can’t say enough about Pacific Biodiesel. This is not to compete with them,” he said. Pacific Biodiesel has been building smaller plants than BlueEarth, on the order of 5 million gallons output. MECO has used Pacific Biodiesel fuel to help solve a smoke problem at Maalaea.
Bob Wellington, a co-managing partner of BlueEarth, said, “BlueEarth will work diligently with other local biodiesel and ethanol producers to encourage increased local biofuels production, greater efficiency and lower pricing.
“Potentially, shared raw materials purchasing, joint land use, and using locally produced ethanol and methanol in our own process are a few of the ways we can further stimulate the local biofuels industry. We intend this to be a win-win for Maui, Hawaii and our company.”
The joint venture between BlueEarth and HECO, BlueEarth Maui Biofuels LLC, is seeking legislative approval to raise $59 million in special purpose revenue bonds. Senate Bill 1718 to authorize the bonds has passed second reading and is pending in the Senate Ways and Means Committee, chaired by Maui Sen. Roz Baker.
Revenues bonds would benefit the business by piggybacking on the state’s lower borrowing costs, but the company is obligated to pay off the bond from its revenues. The amount of anticipated profit was not revealed, but HECO’s share will go into a Biofuels Public Trust that will fund development of Hawaii’s biocrop agricultural infrastructure. “HECO is willing to give up our profits in this bold venture because, in the long run, it is good for our company and good for Hawaii to promote clean, green, local renewable energy here,” HECO President Mike May said.
Although MECO’s participation will be as a buyer, Reinhardt said there would be “little or no” impact on customer rates, at least initially. But as MECO is able to rely on biodiesel, electricity rates will be less influenced by the price of a barrel of oil and more by the price for the alternative fuel. MECO will lease the 15 acres to BlueEarth at fair market rates. Since the cost of Waena is built into Maui’s electric rate base, the rental income will exert a small downward effect when the PUC calculates consumer rates.
Maez said the plant will seek to hire on Maui, with the initial facility expected to require 40 workers and an expanded plant to require up to 100 permanent positions. “We want Maui people to work at the plant,” he said.
Article continues
MECO's goal is to get all of the company’s Maalaea utility power generators off petroleum. The BlueEarth plan calls for straight burning imported palm oil, but HECO will contribute all of its half of the profits to a nonprofit public trust that will encourage the growth of local fuel crops. Candidate crops include palm oil, jatropha, kukui or coconut, the oils of which will be transesterified into biodiesel. Instead of using methanol for the production of biodiesel, locally produced ethanol will be used.
Production of the biofuel should begin in 2009. The first phase output target is 40 million gallons (151 million liters) of biodiesel per year. MECO consumed about 73 million gallons (276 million liters) last year.
Eventually, by phase three, the Waena refinery could produce 120 million gallons (454 million liters) in 2011, and there are plans to use it at Hawaiian Electric plants on Oahu and Hawaiian Electric Light plants on the Big Island.
Aside from general environmental, economic and energy security concerns, at least three factors pushed HECO and MECO towards their decision to use biofuels instead of fossil fuels:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: palm oil :: biodiesel :: ethanol :: Hawaii ::
Firstly, in 2000, the state Department of Health fined MECO for Clean Air Act violations from two of its large 12.5 MW diesel generators at Maalaea. The problem was opacity (smoke) at startup and shutdown, and the use of a small amount of biodiesel solved it.
Secondly, the state renewable energy policy that mandates electric utilities to get at least 20 percent of their power from renewables by 2020.
Finaly, a condition on the Waena power station lot requires at least half of its allowable 240 megawatts of capacity to come from renewable sources.
Current power generation on Maui from all sources – Maui Electric’s Kahului and Maalaea plants, Hawaiian Commercial & Sugar Co.’s Puunene Mill, the Kaheawa Wind and several small co-generation operators – is in the neighborhood of 240 MW. There was no requirement to start out with renewables at Waena, and MECO has been putting off developing the site to avoid the high capital costs that will include site preparation as well as installation of infrastructure.
The initial investment in a combined cycle petroleum-fueled unit – like the latest units at Maalaea – would be several hundred million dollars.
When the county approved zoning for the Waena site, there were no specific renewable sources named, but solar was one possibility. Reinhardt believes using 15 acres of the 60-acre lot for a biodiesel refinery comes within the conditions, although MECO is not adding any capacity. The lot, still in cane, is across Pulehu Road from the Central Maui Landfill.
Palm oil critics
Palm oil has its own critics. Commercial palm oil plantations were encouraged after World War II by the United Nations to provide edible fats for poor people in the tropics. This was very successful.
The palm oil plantations also became a source of oil for margarine makers and commercial bakeries in rich countries, until health fears over transfats reduced that market. Meanwhile, the search for alternatives to petroleum led not only to conversion of palm oil grown for food to oil for fuel, but to rapid expansion of palm plantations into virgin rainforests in South Pacific and Southeast Asian countries.
Reinhardt said he is aware of that criticism, and the HECO-BlueEarth joint venture will avoid obtaining oil from sources “that ravage the forest.”
The refinery is expected to require about 100 construction workers to build and about 40 workers to operate.
Reinhardt said the refinery lease, fuel agreement and generators at Waena will require approval of the state Public Utilities Commission. He said he expects the applications for the developments will be filed “soon” for start of the facility by 2009.
It will require “minimal” amounts of water and among its residual products will be ethylene. Ethylene is inflammable, and although it could not be used in diesel generators, Reinhardt said there might be enough to run a small generator.
Local ethanol for biodiesel production
The transesterification of vegetable oils can be achieved by using ethanol instead of methanol, and the hope is that local producers can supply that. HC&S has been considering using its molasses as feedstock for an ethanol plant, but no decision about that has been made.
The state now requires ethanol to be blended into gasoline. The intention was to encourage a locally-produced, renewable fuel, but so far all of the ethanol has to be imported. The state imports most of its energy, with geothermal on the Big Island, bagasse on Maui and wind turbines at several sites the primary alternative sources of electricity in the islands.
Maui is also home of the country’s first biodiesel plant using waste cooking oil, the Pacific Biodiesel facility headed by diesel engineer Bob King, who developed the technology for utilizing used cooking oil. Other biodiesel makers, including BlueEarth, rely on oil that is not contaminated by food wastes.
Reinhardt said the decision to go with BlueEarth was not a reflection on Pacific Biodiesel. “I can’t say enough about Pacific Biodiesel. This is not to compete with them,” he said. Pacific Biodiesel has been building smaller plants than BlueEarth, on the order of 5 million gallons output. MECO has used Pacific Biodiesel fuel to help solve a smoke problem at Maalaea.
Bob Wellington, a co-managing partner of BlueEarth, said, “BlueEarth will work diligently with other local biodiesel and ethanol producers to encourage increased local biofuels production, greater efficiency and lower pricing.
“Potentially, shared raw materials purchasing, joint land use, and using locally produced ethanol and methanol in our own process are a few of the ways we can further stimulate the local biofuels industry. We intend this to be a win-win for Maui, Hawaii and our company.”
The joint venture between BlueEarth and HECO, BlueEarth Maui Biofuels LLC, is seeking legislative approval to raise $59 million in special purpose revenue bonds. Senate Bill 1718 to authorize the bonds has passed second reading and is pending in the Senate Ways and Means Committee, chaired by Maui Sen. Roz Baker.
Revenues bonds would benefit the business by piggybacking on the state’s lower borrowing costs, but the company is obligated to pay off the bond from its revenues. The amount of anticipated profit was not revealed, but HECO’s share will go into a Biofuels Public Trust that will fund development of Hawaii’s biocrop agricultural infrastructure. “HECO is willing to give up our profits in this bold venture because, in the long run, it is good for our company and good for Hawaii to promote clean, green, local renewable energy here,” HECO President Mike May said.
Although MECO’s participation will be as a buyer, Reinhardt said there would be “little or no” impact on customer rates, at least initially. But as MECO is able to rely on biodiesel, electricity rates will be less influenced by the price of a barrel of oil and more by the price for the alternative fuel. MECO will lease the 15 acres to BlueEarth at fair market rates. Since the cost of Waena is built into Maui’s electric rate base, the rental income will exert a small downward effect when the PUC calculates consumer rates.
Maez said the plant will seek to hire on Maui, with the initial facility expected to require 40 workers and an expanded plant to require up to 100 permanent positions. “We want Maui people to work at the plant,” he said.
Article continues
Monday, February 19, 2007
Going negative: carbon-burial test will monitor leaks
If implemented as a geo-engineering strategy, scientists think BECS can take us back to pre-industrial CO2 levels in a matter of a few decades (earlier post). Biomass crops would be planted at strategic locations around the globe - preferrably in the (sub)tropics -, where they would suck CO2 out of the atmosphere. The crops would then be used as a feedstock for the production of bio-energy (they can be burned in coal and gas plants), after which CCS techniques inject the emissions from the combustion of the crops into a geological formation underground, making the system carbon negative.
Earlier we reported on a CCS project in the French Pyrénées (earlier post), and on new storage locations and storage media but noted that there are still concerns about leakage risks (earlier post). Before we start using costly CCS on a large scale, we must be certain that the greenhouse gases do not escape the geological formations they are stored in.
The largest carbon burial experiment in the world is contributing precisely to analysing this risk. The project is located in Otway Basin, on the coast of southern Australia, where drilling of a 2100-metre well has begun (see picture, click to enlarge). The experiment promises the most comprehensive monitoring for leaks to date.
If all goes well, researchers from the Canberra-based Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) will start injecting carbon dioxide into the new well in July. They will start by extracting CO2 from a nearby natural geological reservoir and compressing it into a "supercritical fluid" – a gas-liquid hybrid. This will be injected via the new well into a sandstone reservoir (this animated graphic demonstrates the process).
The reservoir is shaped liked an upside-down saucer that is partially-filled with methane gas, and covered by a series of impermeable rock layers. Over the following six to nine months, 100,000 tonnes of supercritical CO2 will be injected:
biomass :: biofuels :: energy :: sustainability :: climate change :: carbon capture and storage :: CCS :: carbon negative :: bioenergy :: geo-engineering ::
“We plan to demonstrate that the CO2 will move into the reservoir as predicted,” says Kevin Dodds of CO2CRC and CSIRO Petroleum in Perth. The Otway Basin Pilot Project will also be the most intensely monitored carbon burial project so far in the hopes of demonstrating that CO2 can be safely and securely kept underground.
Green light
“We’re not going to [use carbon burial] unless my Dad and yours believe that it’s going to work," says geologist of Susan Hovorka, at the University of Texas at Austin, US. "We need to lay our cards face up, and let the public know what is going on down there. Otway should be a good opportunity to do this.“ Hovorka leads a team running the Frio Brine carbon burial experiment in Texas, and was a member of the team that reviewed the Otway Basin Project for the International Energy Agency.
Carbon burial – or geosequestration – is one of several techniques being developed to reduce the amount of CO2 released into the atmosphere when coal, oil, or gas are burned (see also $25 million prize for greenhouse gas removal). The gas, which causes global warming, would be captured from power plants and then stored underground.
The idea received a significant legal boost on 10 February when an international law came into force allowing the greenhouse gas to be buried beneath the sea floor (see Green light for carbon burial).
Flushing out
Currently, there are several commercial carbon burial projects around the world. The biggest, in the North Sea’s Sleipner gas field, stores one million tons of CO2 each year in an underground sandstone formation.
Sliepner saves Norwegian oil company Statoil carbon taxes, and cuts Norway’s annual output of greenhouse gases. But the aim of most commercial projects is to use CO2 to push out more oil, rather than to find a way of reducing greenhouse gas emissions, and monitoring for leakage is minimal.
In contrast, the Otway Basin experiment involves intensive monitoring of levels of CO2 in soil, water and air. The project includes adding tracers to the injected CO2 to enable researchers to identify whether the detected gas is from vegetation, natural underground sources or from the CO2 store, says David Etheridge, an atmospheric scientist at CSIRO in Aspendale near Melbourne, Australia.
Clean fresh air
The location of the Otway Basin Project is an advantage because air measurements can be made while prevailing winds bring clean air from the Southern Ocean, uncontaminated by industrial or natural sources of CO2.
“There is no CO2 source out there. It’s a lot different to what you have in Texas with CO2 sources all around from off-shore oil and drilling, shipping and cities,” says Hovorka.
Carbon burial is mostly needed for coal-fired power stations, which account for about a quarter of global CO2 emissions, but obstacles beyond remain to be overcome. These include reducing the cost of the technologies that capture CO2 from power stations, and testing a variety of geological sites for their suitability for carbon burial.
Peter Cook, CO2CRC chief executive, adds: “We need a policy and pricing environment that will encourage people to use the technology.”
Article continues
posted by Biopact team at 5:24 PM 0 comments links to this post