Making electricity is not a pretty business, but gosh, don't we love it when the lights come on and the refrigerator hums and the router connects us to the cyber superhighway? And don't be getting all smug thinking, oh, I'm clean and green, off the grid, because garans, there's ugliness in the manufacture and shipping of your batteries and PV panels.
Anyway, the folks on our little island suck down 73 megawatts of electricity at peak consumption, much of it generated by burning naptha at the Kapaia power plant and low-sulfur diesel at Port Allen. Though “we run the cleanest plants in the state,” according to KIUC spokesman Jim Kelly, there's no escaping the fiscal and political vulnerabilities — not to mention the carbon emissions — associated with using fossil fuels shipped in from Indonesia or some other far away place.
So KIUC is moving into renewable energy sources, like solar, biomass and hydro, which is how I found myself in a painted eucalyptus grove near Halfway Bridge where a major industrial project is in the works.
It's the Green Energy biomass plant, where eucalyptus and albezia trees — some of them wild, some grown in plantations — will be cut down, chipped, stored in a 10-story-tall building and then fed, via conveyor belt, into a boiler that creates steam, turns the turbine and makes electricity.
Men in hard hats, safety vests and heavy boots buzzed around the site like worker bees in a hive, as big and little trucks drove in and out. Cranes towered overhead, and heavy equipment rumbled and roared, moving piles of dirt as a stiff breeze kicked up billowing clouds of dust.
The blustery 64-acre site — five acres is being used for the plant, with the rest in eucalyptus and albezia — seems well-suited to wind generation. But we aren't going there on Kauai, because the native seabirds have already been so devastated that they can't take any more hits. And I got no problem with that.
Still, it was a little amazing to think that in the 21st Century, we're generating power by burning wood — though this very old technology has been made super modern by the use of a German-made, state-of-the-art facility that uses “electrostatic precipitators” to filter out much of the crud. In other words, there is no belching smokestack.
Under its EPA air permit, its emissions will be significantly less than the quantities of nitrous oxide and sulfur oxide — one-fifth and one-third, respectively — produced by burning diesel at the power plants. Its particulate emissions will also be lower, and it's billed as carbon neutral, which fossil fuels decidedly are not. Green Energy conducted an Environmental Assessment and an EPA Environmental Review, with no findings of significant impact.
KIUC likes it because it uses fuel grown right here, giving us “a hedge against craziness in the world,” which often translates into wild oil price fluctuations and curtailed shipments, Kelly says. Another advantage: it's “a firm energy source,” which means it can produce 7 megawatts of power round-the-clock.
So what about price? After all, the plant is costing $90 million, with Standardkessel Baumgarte Contracting GmbH of Germany and Green Energy (Eric Knutzen and Jeff Lindner) picking up the tab, aided by a $72.9 million federal loan guarantee. Green Energy will own and operate the plant, selling electricity to KIUC.
Though the state Public Utilities Commission allows utilities not to disclose the exact costs of their power purchase agreements — something about proprietary information and competitive bidding — Kelly says it will cost consumers less than oil, which is about 25 cents per kwh now. The Green Energy plant will replace some 3.7 million gallons of imported oil burned in Kauai power plants each year.
Mario Scharf, a super smart guy from East Germany, has traveled the world building these plants for Standardkessel Baumgarte Contracting GmbH, which developed the technology and builds the equipment. He's in charge of the getting the Green Energy facility up and running, which hasn't been an easy task.
Though it's the smallest plant they've built, it's been the most challenging, with double the costs, he says. Why? Because the Hawaiian Islands are the most remote inhabited land mass on Earth, which means everything must be shipped in, and much of it from Europe, since the U.S. doesn't make steel stuff any more.
Yes, there's a reason why electricity is so expensive here, and it has nothing to do with CEO David Bissell's salary. It's due to shipping and no economy of scale. Though hey, we could be burning coal for 5 cents per kwh if we wanted to really get regressive.
In a hellish logistical and scheduling exercise, they've brought in 300, 40-foot containers worth of stuff, much of it making a three-month slog from Hamburg to Nawiliwili. About 200 guys are employed in the construction, most of them Kauai residents.
The plant and tree farms will employ some 39 fulltime workers when it comes on line late this year. Green Energy's own guys will be cutting the wood, which will be harvested, left in the field to lose about half its moisture content, which takes a week or two, then chipped on-site. It will be contracting with two or three local haulers to bring the chipped wood into the plant, between eight and 14 truckloads per day, depending on where it's being grown. The chips will be stored in a 100-tall-building, prior to being fed into the boilers.
They have four years worth of wood secured, including Bill Cowern's Hawaiian Mahagony plantation. The company has clearing rights on 6,500 acres and long-term leases on about 2,000 acres, much of it at Kalepa, where it plans to grow eucalyptus.
It takes about four to five years for a seedling to reach cutting size — eucalyptus grows 20 feet a year. The stumps will be left to regrow, and then recut, a process that can be repeated four or five times before the tree is all pau. Ash, the one residue from the plant, will be used on the tree farms because its high nitrogen content makes it a valuable fertilizer, Scharf says.
Green Energy plans to harvest wild trees — don't freak out, we're talking trash albezia that are threatening the water sheds, and non-native eucalyptus — for the first four years while its plantations grow. It also hopes to make use of the charred, mostly-eucalyptus trees left from the Kokee fires, with a California logging company bidding to remove the downed trees from the steep slopes so they can be reforested with native trees.
The plant can use only virgin wood – no pallets or construction debris — and the sources can't be mixed, because soft trees like albezia burn faster than eucalyptus. The company is currently allowed to burn only those two types of trees, though it plans to seek an amendment to its air quality permit to use the Kokee trees and other wood sources that may become available.
“We will only burn it if it meets the emission requirements,” Scharf says. The company also has a stake in keeping its fuel clean and dry, to protect its expensive smoke stack from chloride corrosion.
Kelly and I left the hubbub of Green Energy and headed down the road, toward Koloa, where 55 acres of ag land leased from Grove Farm is being slowly covered with solar panels. It will generate about 12 mw of electricity, and is expected to start coming on line at the end of June.
The two sites were about as different as night and day, like the energy they produce. Some 54,000 American-made solar panels, each costing $500, have been shipped to Kauai for this array, which is the first utility-scale project for its contractor, Solar City.
By 2015, when all of the pending solar projects come on line, they'll be generating more electricity than KIUC can use, in the daytime, anyway, and when the sun is shining, which is why the utility is also focusing on storage.
"Storage technology is now the deal,” Kelly says, and 89 companies have responded to KIUC's recent request for proposal to build storage capacity.
By 2023, KIUC expects to generate more than 50 percent of its electricity from renewable sources. It ain't be gonna be free power, or even super cheap, but it will be cheaper, cleaner and less economically and politically volatile than burning oil, Kelly says.
As we pulled out onto the road, we stopped to look at the old Koloa mill, which used to burn sugar cane bagasse to generate the electricity that powered its operations and plantation worker camps. Though derelict, it's still a cool-looking building, an enduring legacy of the sugar era and a mute monument to our ever-growing gluttonous greed for bright lights, cool air, hot water, frozen foods and electronics.
And as I snapped this photo, I couldn't help but wonder what an observer will make of Green Energy and the solar farms, a hundred years hence.
For a long time wood ash has been used in agricultural soil applications as it recycles nutrients back to the land. Wood ash has some value as a fertilizer, but does not contain nitrogen. Because of the presence of calcium carbonate it acts as a liming agent and will deacidify the soil increasing its pH.
this is a good analysis. sounds like good moves by KIUC - sure better than importing and burning diesel. I am glad you acknowledged the birds.
Remember a few years back when much of the County Council opposed efforts to mandate solar water heating on new homes. That was a Hooser bill, I think, but it passed.
G'zooks Joan- great article.
Methinks that there is more pertinent information in your Blog then radio and Garden Island combined.
Tho' we may be enamored with the past, if someone tried to build a Sugar Mill, or any other type of Mill, the outcry would make the anti-GMO and anti-Dairy protests look like a meditative seance.
The only reason the Albezia energy plant got going is because no one
knew about it. Now that you can see the building from the Highway, there will be another whack-a-doo festival.
Hopefully they will keep a buffer zone of trees on highway to keep "progress" out of view.
Thank you for your timely articles.
On another note, every time a new Blog post comes online, there are a ton of people who are happy they are not mentioned.
You should run for Council, voters whether they agree or disagree with your viewpoints, they would rather have an intelligent thinking person, who cares about Kauai and Kauai's people instead of a bunch of pension seeking, glory searching pontificaters who let their egos get in the way of solid legislation. As a matter of fact, I can see and Mel Rapozo being pals because, pro or con, you both tell the truth and honesty is what Kauai needs.
Please do NOT run for council!
We need you doing what you are doing.
Great Article Joan. Thank you. I have been following the Green Energy saga for years and am thankful for it coming to be. Eric Knutzen held the vision through ups and downs. im thankful for his vision and tenacity. Oh yea and European banks who funded a project US banks wouldnt touch.
Tim- Oh yea and anytime you can blast the USA or Big Business, you make sure your chime is heard.
Wow - on the payroll now for KIUC?
The last comment is funny, you report on the changes that KIUC has made to achieve clean energy and then get accused of being on the payroll? get with with the times Joan, NO to everything, especially clean energy,wtf?
Ha ha! No to clean energy! No to exercise! No to education! JUST SAY NO!
$90,000,000 for a plant that only generates 6.7Megawatts!
KIUC Customers get screwed again
Renewable Energy Production Tax Credits and Energy Investment Tax Credits are not enough to offset this capital cost!
look for yourself u paid for this too:
Table 1 in Findings
therefore u pay the most for power of anywhere in the USA!
KIUC didn't pay for the plant . It's buying electricity from the plant's owner.
We pay the most for food, housing, gas and electricity. Fact of being in the middle of the ocean with high land prices. It's also the most beautiful.
A lot of places are as beautiful or more beautiful than Kauai. That's just how you get suckered in to pay the "paradise tax."
Beauty is in the eyes of the beholder, and to me, Kauai is #1
Joan's statement: "Yes, there's a reason why electricity is so expensive here, and it has nothing to do with CEO David Bissell's salary."
In 2012, Bissell made $382,000. 8 other employees made over $200,000. 3 more made over $175,000. Those top 12 made almost $3,000,000. SIXTY-SIX employees made over $100,000. And the top 5 contractors made close to an additional $3,000,000. Yep, our rates have NOTHING to do with Bissell's or anyone else's salary.
Does KIUC have a board that sleeps often during meetings?
Is Joan's comment a bit KIUC biased?
Can't wait to see 2013's numbers. What was the raise for Bissell in 2013 and again in 2014?
Don't believe it? Try http://kauai.coopwebbuilder.com/sites/kauai.coopwebbuilder.com/files/2012_irs_form_990.pdf
Let's see, we've got fossil fuels accounting for 49.9% of expenses, and administrative accounting for just 7.3%. Now which do you think is having the biggest impact on your electric bill?
Board member Karen Baldwin said on the radio that Bissell's pay is comparable to, and even less than, the CEOs of similarly-sized cooperatives, and quite a bit less than for-profit utilities.
So is Anonymous misinformed AND a lot biased against KIUC administrators? Is Anonymous a chicken shit for making digs against me and the Board without using his name? The answer to both is yes.
Burn all the chickens too.
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