BIOFUELS: ETHANOL, BIODIESEL

BlueEarth Maui Biodiesel LLC is a non-existent entity seeking $59M in Special Purpose Revenue Bonds (SPRBs) from the Hawaii Legislature for a 120M gallon/year biorefinery on Maui
The Growing Danger of Ethanol, Biofuels, Wall Street Journal, December 5, 2006, Page A1 
BlueEarth Testimony
Imperium (formerly Seattle Biodiesel) is seeking to build a 100 M gallon/year biorefinery on Oahu. Company states that an Environmental Assessment is imminent. Open Forum: Subsidies are the wrong road to biofuels By Michael O'Hare, San Francisco Chronicle, Sunday, July 30, 2006 Kauai Ethanol LLC Clean Air Permit Application
Kaui Ethanol LLC is being required by the Department of Health to file an Environmental Assessment. The most destructive crop on earth is no solution to the energy crisis. By George Monbiot The Guardian, December 6, 2005 Life of the Land's Hawaii Energy Blog
Hawai`i BioEnergy, LLC is a partnership between Maui Land & Pineapple Company, Grove Farm Company, and Kamehameha Schools. There has been no public action for month Ethanol: Good idea or just sweet talk? Editorial by Henry Curtis, Haleakala Times, May 23, 2006 HECO's Proposed 2009 Biofuel Power Plant
Biofuels Progress Report. Commission of the European Communities. (January 10, 2007) In 2000, Europe's oil imports stood at 9 million barrels per day (mbpd): 2 from Africa, 3 from the Middle East and 4 from Russia and the CIS. The global palm oil production increase has been driven by the food market, not the biofuel market. Sustainability Standards for Bioenergy. The study provides an overview of key ecological and social impacts of bioenergy and develops a core set of standards which could ensure the sustainability of future bioenergy supplies.  World Wildlife Federation, November 2006 Biodiesel Crop Implementation in Hawaii By Michael D. Poteet, Hawaii Agriculture Research Center (HARC); Prepared for:  Hawaii Department of Agriculture (September 2006). Available Land. Potential Crops for Oil Production in Hawaii (Soybean, Flax, Rapeseed, Sunflower, Peanut, African oil palm, Kukui nut, Avocado,  Coconut, Jatropha curcas, Neem tree,Algae, Other. Small-scale facilities for agricultural producers. Large-scale facilities for island-wide consumption.
Bringing Biofuels to the Pump: An Aggressive Plan for Ending America's Oil Dependence, Nathanael Greene, Yerina Mugica, Natural Resources Defense Council (NRDC) 2005 Ethanol's Growing List of Enemies: As demand for the alternative fuel drives corn prices up, an unlikely assortment of groups are uniting with the hopes of cutting government support. by Moira Herbst. Business Week Special Report March 19, 2007 Hawaii Biofuels Summit Briefing Book (August 8, 2006)
Biodiesel Solutions or Problems.  The only way to attain energy security is by a policy of conservation, efficiency, and clean energy (wind, solar). EnergyJustice Food vs. Fuel. As energy demands devour crops once meant for sustenance, the economics of agriculture are being rewritten. BusinessWeek.com, February 5, 2007. Editorial: Without homegrown crops, biodiesel still will be imported fuel  Honolulu Star-Bulletin  March 29, 2007
Growing Energy: How Biofuels Can Help End America's Oil Dependence. (December 2004) By Nathanael Greene, Senior Policy Analyst, Natural Resources Defense Council  (NRDC) The oil for ape scandal – how palm oil is threatening orang-utan survival. Friends of the Earth (2005) What this important report spells out, however, is that anyone who buys chocolate, crisps, bread, cakes, detergents, toothpaste, shampoo, lipstick or a host of other products may be an unwitting partner in causing the extinction of the orang-utan. Biodiesel, ethanol in race to fill 'er up: Proponents of both fuels compete for research money, tax credits  by Eric Phillips Pacific Business News (Honolulu) - September 1, 2006. A quiet race is under way in Hawaii between two alternative fuel technologies -- biodiesel and ethanol.

Biofuels: "Green Energy" Panacea or Just the Latest Hype?  by Brian Tokar, WW4REPORT Several well-respected analysts have raised serious concerns about this rapid diversion of food crops toward the production of fuel for automobiles. 		Ethanol and the Environment: Delivering on the Promise of a Sustainable Biofuel By Nathanael Greene, Senior Policy Analyst at the Natural Resources Defense Council. Biofuels, especially ethanol derived from the cellulosic part of plants rather than just the starch, are the most promising alternative fuels for the transportation sector. Out of gas: Ethanol’s promises have been big. Has it failed to deliver? by Joan Conrow. Honolulu Weekly June 28, 2006.  Will we end our tragic affair with oil, terminate our unsavory liaisons with bloody Middle East wars, ravaged landscapes, ozone depletion, global warming? Will we take up with ethanol and live happily ever after, amid green fields with high biomass content, instead?
Biofuels Are an Environmental Dead End By Tom Philpott, Grist Magazine. Posted December 13, 2006. Tom Philpott questions biofuels skeptic extraordinaire David Pimentel about why crop-based energy won't work.  Any worthy idea can withstand and even be improved by naysayers; scolds and skeptics play the useful role of pointing out obvious flaws. The biofuels industry has no more persistent, articulate, and scathing critic than David Pimentel, professor emeritus of entomology at Cornell University. In 1979, with the price of oil surging and a politically connected company called Archer Daniels Midland investing heavily in ethanol production, the U.S. Department of Energy invited Pimentel to chair an advisory committee to look at ethanol as a gasoline alternative. The committee's conclusion: ethanol requires more energy to produce than it delivers. F&C Management: Palm Oil Investment Where does your  palm oil come from?  From lipstick to ice cream: a survey of palm oil use and supply chain management (December 2003) Sustainable palm oil sourcing: key considerations for companies. Should investors be concerned?  
 Enough water for ethanol? By Sean Hao. Honolulu Advertiser Sunday, October 8, 2006. The state hosted a biofuels summit Aug. 22 at the Hawai'i Convention Center to coordinate efforts. Entry was by invitation only and environmental groups, such as Life of the Land, were not invited. Environmental activists ultimately could affect the debate over diverting more water to agriculture. "If we're not at the table, it could drag out for years," said Life of the Land's Curtis. "If everybody sits down at the table and starts talking, it could happen in maybe five years."
Round Table on Sustainable Palm Oil (2003) Paper 1  Paper 2
 Additional Articles


Proposal to build a large biodiesel refinery on O`ahu using imported Palm Oil (Imperium Biofuels)

''Company plans to mass-produce biodiesel in Kapolei'' By Diana Leone (Honolulu Star-Bulletin, March 26, 2007) Imperium Renewables Inc. is planning a $90 million "advanced method biodiesel processing" plant on state Department of Transportation land at Barbers Point Harbor, company representatives told the Makakilo-Kapolei-Honokai Hale Neighborhood Board last month, its Chairwoman Maeda Timson said. ... Imperium representatives said the plant would produce 100 million gallons a year of biodiesel from imported vegetable oil, Timson said. The nonfossil fuel source could be oil palms imported from South East Asia, plus locally grown Hawaii plants and possibly, when the technology develops, algae, she said. ... Imperium talked informally with state Department of Health Clean Air Branch officials last year about what the state's air emission requirements are, but the company has not submitted an application for a permit, said Nolan Hirai, the branch's engineering supervisor.

Makakilo / Kapolei / Honokai Hale Neighborhood Board Presentation (February 28, 2007) Lance Ayrault (Managing Director), David Leonard and Mark Fields (head of corporate engineering) Imperium Renewables, Inc.

Oahu Biodiesel Production Facility – Imperium Renewables Hawaii – Lance Ayrault, Managing Director, Imperium Renewables, Inc., reported that Imperium is in advanced stages of engineering and permitting for a production facility on Oahu that will produce a biodegradable and non-toxic replacement for petroleum diesel, called ''biodiesel.'' 

The site will be at Kalaeloa Barbers Point Harbor, scheduled to be operational by April 2008. Construction will involve 350 jobs and operation will entail 70 permanent jobs. The non-fossil fuel will initially be imported vegetable oil, but will hope to convert to oil palms as a source, transported from South East Asia and augmented by any local grown Hawaii plants. As technology develops, algae may also be considered as a fuel source. 

Biodiesel is made (transesterification) by fixing fat or oil with methanol and a catalyst (usually sodium or potassium hydroxide) which results in glycerin and biodiesel. Biodiesel has a high flash point, which makes it safer to store, transport and handle and is biodegradable.

Ayrault said the initial supply of feedstock would be from South America or South East Asia, requiring 100 million gallons of oil. Ross asked about potential harms; Fields, head of corporate engineering for Imperium, reported that methanol is used as part of the process, but said it is very small use compared to other users and that the use would be within the permits.

He said groundbreaking was anticipated at mid year 2007 and operations would start in 2008. Chair Timson thanked Imperium for the presentation and asked them to return as the project advances.


Blue Earth Web Site Info

Blue Earth Press Release (March 10, 2007)

BIOFUEL: BlueEarth Studying Many Sources for Oil (Wellington, Letters to the Editor, Honolulu Advertiser, March 10, 2007) In response to the letter (March 4) from Kelly King, vice president of Pacific Biodiesel, we share many of her concerns. We respect what the Kings have done to foster biodiesel production and use in Hawai'i, and would be happy to work with them in the future.

Study considers Kahului Harbor alternatives (Maui News, March 9, 2007)  Two very different possible harbors are described in the preparation notice for an environmental impact statement, published Thursday in the bulletin of the Office of Environmental Quality Control.   Includes pipeline upgrade for MECO biofuels. Office of Environmental Quality Control (OEQC) Bulletin March 8, 2007  *  Kahului Harbor EISPN

BIOFUEL: HECO Refinery Plan Has Negative Impacts (Kelly King, Letter to the Editor, Honolulu Advertiser, March 4, 2007) Regarding the response from HECO/BlueEarth Biofuels to Bill Kamanu's letter of concern about its proposed 40 to 120 million gallons per year biodiesel refinery: Maybe the title should have read "Biofuels here won't harm environment here." There have been countless articles — from the Wall Street Journal to the Asia Times — written about the devastating effects of the importation of large quantities of palm oil. Some of these articles indicate that Europe, which was producing biodiesel almost a decade before it became experimental in the U.S., is now backing away from palm oil feedstocks because of deforestation and the actual increase in carbon-based global warming. If HECO is truly interested in making a positive impact, it would not have been difficult for it to find the information: Environmental organizations such as Friends of the Earth are helping to expose these atrocities. HECO's plan will increase global warming until all 120 million gallons of biodiesel are produced from oil crops grown in Hawai'i, something that is impossible to achieve. Thus, Hawai'i will still be hostage to unstable, potentially hostile nations which control palm oil, like anti-U.S. Malaysia and Indonesia, both large Muslim countries. HECO's mad rush to secure approvals and public support for such a negative-impact project indicates it is unaware of the issues and may be using unknowledgeable industry experts, if, in fact, it is even consulting experts. Kelly Takaya King, Vice president, Pacific Biodiesel Inc.

VIEWPOINT: Biofuel money should be spent in Hawaii for Hawaii (Lance Holter, Maui News, March 01, 2007) BlueEarth plans to produce biodiesel from imported palm oil and will import at least 40 million gallons per year. Importing oil? How does this create a sustainable local renewable energy economy? I thought we were trying to get away from this paradigm.

HECO, BlueEarth: Biofuels here won't Harm Environment  (May, Maez, Letter to the Editor, Honolulu Advertiser, February 26, 2007) Bill Kamanu (Letter, Feb. 22) raises a legitimate concern about the impact of increased use of biodiesel from palm oil on rainforests and the creatures living in them. At Hawaiian Electric Co. and BlueEarth, we believe that doing the right thing also means doing it the right way.

BIODIESEL: Palm Oil Responsible for Forest Destruction (Bill Kamanu, Letter to the Editor, Honolulu Advertiser, February 22, 2007) The Feb. 18 article "$61M biodiesel plant outlined" reminded me of Hawai'i's early days of colonization through deforestation and Big Sugar's monoculture crop destruction of our once-pristine ecosystem and unique biodiversity. Palm oil is the primary plantation crop responsible for rainforest destruction throughout the world. It is destroying wildlife habitat in Borneo-Sumatra and threatening the Sumatra tiger and orangutan ape with extinction. Purchasing palm oil to produce 40 million gallons of biodiesel is a substantial amount. No matter where it is bought, it will affect global supply and demand. Thus, this new dependency on palm oil as an alternative fuel will only encourage more deforestation, wholesale loss of critically endangered species' habitat and the greedily driven destruction and stealing of poor indigenous peoples' lands and natural resources. Hawai'i's politicians should know better than to support and encourage this type of environmental terrorism — maybe it's all about HEI/ASB's plan to control Hawai'i's new emerging biofuel industry, to fatten its portfolio. Bill Kamanu, Wai'anae

$61 million project a start to ending use of petroleum  (Maui News, February 18, 2007)  Hawaiian Electric Co. and BlueEarth Biofuels LLC announced Saturday that they will build a $61 million biodiesel refinery at the Waena power station site, with Maui Electric Co. the initial customer. While MECO President Ed Reinhardt said the goal is to get all of the company’s Maalaea generators off petroleum, Mayor Charmaine Tavares noted her call at her inauguration to diversify the county’s economy.  The development of a plant-based alternative energy source would support her vision of a sustainable Maui economy, she said.

Maui biodiesel plant planned: The proposed $61 million facility would generate energy from replenishable sources (Honolulu Star Bulletin, February 18, 2007) BlueEarth Maui Biodiesel LLC hopes to start operating a refinery in 2009 with imported oils -- probably palm oil, company spokesman Ray Sweeney said yesterday.  But it could ultimately produce biodiesel fuels made from Hawaii-grown oil products that could include coconut or kukui nuts.   Raymond Sweeney Ethics Form

Business Week Special Report (March 19, 2007): ''Ethanol's Growing List of Enemies''  By Moira Herbst.

Hawaii to meet E10 mandate with imported ethanol (Ethanol Producer Magazine, April 2006)  In April 2005, EPM reported that proposed [Hawaii] ethanol plants might be delayed due to permitting issues. It also reported that four projects were on track to start production in early 2006. One year later, all six proposed plants are delayed for reasons including permitting, financing and construction planning.

Grist (06 Dec 2006): Give Green, Go Yellow: How cash and corporate pressure pushed ethanol to the fore. By Tom Philpott

Wall Street Journal, December 5, 2006, Page A1    The Growing Danger of Ethanol, Biofuels
Crude Awakening: As Alternative Energy Heats Up, Environmental Concerns Grow. Crop of Renewable 'Biofuels' Could Have Drawbacks; Fires Across Indonesia. Palm-Oil Boom Ignites Debate By PATRICK BARTA and JANE SPENCER

Investors are pouring billions of dollars into ''renewable'' energy sources such as ethanol, biodiesel and solar power that promise to reduce the world's reliance on petroleum. But exploiting these alternatives may produce unintended environmental and economic consequences that offset the expected benefits.

Among the world's most fabled islands, Borneo -- which is divided between Indonesia and Malaysia -- is considered by environmentalists to be one of the last great tropical wildernesses. It's home to rare and unusual species, including the wild orangutan, the clouded leopard and the Sumatran rhinoceros. ... Now, the palm-oil boom threatens what's left.

As fires burn deep into the dry peat soil beneath Indonesia's forests, centuries of carbon trapped in the biomass are released into the atmosphere. A study presented last month at a U.N. Climate Change Conference in Nairobi showed that Indonesia is the world's third-biggest carbon emitter behind the U.S. and China, when emissions from fires and other factors are considered.
http://online.wsj.com/article/SB116501541088338547.html

Open Forum: Subsidies are the wrong road to biofuels By Michael O'Hare, (San Francisco Chronicle, Sunday, July 30, 2006) The first problem is that an ethanol subsidy makes this chemical cheap, no matter how it's made. Among the most important things my colleagues and I have found in studying ethanol is that its benefits for the planet (reduced global warming) and the nation (reduced dependence on imported petroleum) depend a lot on how it is made, and what it is made of.

Sustainable Monoculture? No, thanks! Debunking agribusiness greenwash. Against the Grain (June 2006)  www.grain.org/

Another silver bullet for Africa? Bill Gates to resurrect the Rockefeller Foundation's decaying Green Revolution. Against the Grain (September 22, 2006)  www.grain.org/

The Guardian (December 6, 2005). Comment: The most destructive crop on earth is no solution to the energy crisis. By George Monbiot
By promoting biodiesel as a substitute, we have missed the fact that it is worse than the fossil-fuel burning it replaces. Over the past two years I have made an uncomfortable discovery. Like most environmentalists, I have been as blind to the constraints affecting our energy supply as my opponents have been to climate change. I now realise that I have entertained a belief in magic.  ... Before I go any further, I should make it clear that turning used chip fat into motor fuel is a good thing.


Honolulu Star-Bulletin
December 14, 2006

OUR OPINION

Change in electricity production a complex, costly endeavor

THE ISSUE

Hawaiian Electric Co. has agreed to use plant-based fuel to run its proposed new facility.

HAWAIIAN Electric Co.'s agreement with the state to produce electricity without fossil fuels puts a greener tint on its controversial plant proposal and could dampen objections as it continues its conventional tack for power generation.

The company's effort to trim dependence on oil and coal deserves a nod, but its commitment to use plant-based fuels hinges on whether those fuels will be available in good supply by the time HECO intends to fire up the complex.

Meanwhile, rate increases HECO and its Maui affiliate are seeking add another concern for residents and businesses, amplified by the widespread power outages after the October earthquakes.

Hawaii has huge potential for power generation through its natural resources -- solar, wind and wave -- and through growing plants to convert to fuels. The price of oil, both in dollars and in geopolitical costs, has heightened demands that the company move faster toward renewable energy.

However, shifts in power generation and distributions are complex technically, physically and in mindset. In addition, the utility companies say, they are obliged to investors as well as ratepayers.

HECO's plan to build an oil-fired plant at Campbell Industrial Park has been criticized as out of step with the state's and the public's desire to push renewable fuels to the forefront and to lessen environmental degradation.

In an agreement with the state's consumer advocate, the company said it will use only ethanol and biodiesel to run the new plant. But ethanol production in Hawaii has lagged with just one processor on Kauai close to output.

HECO plans to contract with a producer next year in hopes of having fuel available by July 2009, when it wants to start up the new plant. Still, as HECO official Robbie Alm asked, will the fuel be ''ready for us in 2009?''

The company's commitment should serve to blunt some criticism of its proposal, but as an environmental group pointed out, ethanol is not a panacea. Problems like water allocations needed to grow feed stock, agricultural chemicals, use of fossil fuels to make ethanol and the efficiency of the fuel could shrink ethanol's advantages.

Moreover, there are questions about the practicality of continued public investment in systems that may not advance the state's energy goals and that distribute electricity in less reliable modes.

HECO and its affiliates are attempting to change electricity production but those changes are complicated by a struggle to keep up with accelerated growth and the costs of shifting to cleaner technology while maintaining power and cash flow.


Biofuels: Neither Cheap Nor Green

Henry Curtis
Executive Director
Life of the Land

We have a choice. We can rip apart communities and re-ignite water wars here in Hawaii. Or we can buy cheap biofuels on the world market. The problem is that biofuels, like fossil fuels, are only cheap when including financial cost and excluding environmental, social, political and planetary impacts.

The article ''Crude Awakening: As Alternative Energy Heats Up, Environmental Concerns Grow'' by Patrick Barta and Jane Spencer (Wall Street Journal, December 5, 2006, page A1) should serve as a wake-up call for the world:

''In Indonesia, Malaysia, Canada and elsewhere, forests are being slashed for new energy-yielding crops or other unconventional fuels. In India, environmental activists say, water tables are dropping as farmers try to boost production of ethanol-yielding sugar. ...

Among the world's most fabled islands, Borneo -- which is divided between Indonesia and Malaysia -- is considered by environmentalists to be one of the last great tropical wildernesses. It's home to rare and unusual species, including the wild orangutan, the clouded leopard and the Sumatran rhinoceros. Now, the palm-oil boom threatens what's left. ...

As fires burn deep into the dry peat soil beneath Indonesia's forests, centuries of carbon trapped in the biomass are released into the atmosphere.

A study presented last month at a U.N. Climate Change Conference in Nairobi showed that Indonesia is the world's third-biggest carbon emitter behind the U.S. and China, when emissions from fires and other factors are considered.''

In a contested case proceeding before the Hawaii Public Utilities Commission (December 11-13, 2006), Hawaiian Electric Company (HECO) stated that they will burn biofuels in their proposed 2009 power plant. HECO also stated they are not in agriculture and shouldn't be held responsible for where biofuels for their proposed plant would come from.

Biofuels are more destructive than naphtha when all of the fossil fuel inputs are added together, and when the destruction of ecosystems to make room for energy crops is included. Why go from bad to worse.


False & Destructive "Solutions" to Global Warming: Groups Condemn Large-Scale Biofuels, Genetically Engineered Trees & Crops, Monoculture Tree Plantations
PRESS RELEASE **For Immediate Release** 16 November 2006

UN Framework Convention on Climate Change, Nairobi, Kenya

UNFCCC: Nairobi, Kenya-The Gaia Foundation, Global Forest Coalition, Global Justice Ecology Project, Large Scale Biofuels Action Group, the STOP GE Trees Campaign and World Rainforest Movement held a press conference today during the 12th Conference of the Parties of the United Nations Framework Convention on Climate Change. The event addressed the socially and environmentally devastating impacts of large-scale biofuel production, genetically engineered trees and crops, and carbon sink plantations, and explained why these schemes will not solve climate change.

The promotion of large-scale biofuel production as an alternative to fossil fuels, and of tree plantations to store carbon is becoming very popular at this year's UNFCCC. Genetically engineered (GE) [also called transgenic or genetically modified] crops and trees have also been promoted as a way to implement these co-called "solutions" to climate change.

"Not only will large-scale use of biofuels and genetic engineering technology not help to alleviate climate change, they may in fact exacerbate the problems of global warming while also causing environmental degradation, social inequality and poverty, particularly in developing countries," stated Teresa Anderson of the London-based Gaia Foundation.

Using important agricultural land and water to grow biofuels instead of food for domestic consumption will have a detrimental effect on food security, especially in poor countries. In 2006, an increase in the use of grain worldwide for conversion to biofuels led to a 60% increase in global grain prices. "Soya plantations in Latin America and palm oil plantations in Indonesia, being developed for biofuels, are driving deforestation and pushing hundreds of thousands of
farmers and indigenous peoples off of their lands," stated Miguel Lovera of Global Forest Coalition. "Once again the developing countries of the South are being asked to pay the price for the unsustainable lifestyle of the North."

In addition to their social and environmental impacts, the carbon-saving benefits of biofuel plantations are also being challenged. Biofuel studies, published in the U.S., found the fossil fuel energy required to produce and process biofuel crops like soya and maize is almost as much, or in some cases more than, the energy contained in the fuel produced.

Activists are also condemning tree plantations used to store carbon: "This Convention needs to move away from the complicated and fraudulent carbon trading schemes" stated Ana Filippini of Uruguay-based World Rainforest Movement "It should begin to address seriously the issues of how to phase out fossil fuels and how to stop deforestation".

While conventional monoculture tree plantations already have enormous documented social and ecological impacts, industry is now considering the use of genetically engineered trees in these plantations-which would greatly exacerbate these devastating impacts and also lead to new, unprecedented and unpredictable impacts.

Genetically engineered trees were approved for use in carbon sinks by the UNFCCC in 2003, despite a complete lack of research on the potential risks of these trees which may be engineered to kill insects, grow faster, be more easily pulped or be resistant to toxic herbicides.

"The release of GE trees in huge plantations to store carbon must be banned," stated Anne Petermann of Global Justice Ecology Project. "The escape of pollen or seeds from GE trees into native forests would cause severe and totally unpredictable ecological impacts that could impact the ability of forests to store carbon, worsening global warming". Andrew Boswell of the Large Scale Biofuels Action Group added " In the light of the precautionary decision on GE Trees made by the UN Convention on Biological Diversity in March 2006, we urge the countries of the South to stay resolutely cautious about adopting these technologies that are not in their control, nor likely to be in their best interests."

In response to these ill-conceived schemes, organizations, indigenous peoples and others around the world have joined together to demand an end to false climate change "solutions" that include industrial tree plantations, genetically engineered crops or trees or large-scale and unsustainable production of biofuels.


Kauai Ethanol LLC
Hawai`i's First Ethanol Refinery Application

Request for Public Comments on Draft Air Permit Regulating the Emissions of Air Pollutants  (Docket No. 06-CA-PA-21)
Pursuant to Hawaii Revised Statutes (HRS), Chapter 342B-13 and Hawaii  Administrative Rules (HAR), Chapter 11-60.1, the Department of Health, State of Hawaii (DOH), is requesting public comments on a DRAFT PERMIT presently under review for:  Kauai Ethanol, LLC

Initial Covered Source Permit (CSP) No. 0620-01-C   12-Million Gallon per Year Ethanol Plant  Located at TMK: 1-7-06-1, Kaumakani, Kauai

The DRAFT PERMIT is described as follows:  Covered Source Permit No. 0620-01-C would grant conditional approval to operate the following equipment at the Kauai Ethanol facility:

1. One (1) Carbon Dioxide Scrubber with six (6) sieve trays;
2. One (1) Ethanol Scrubber with eight (8) sieve trays;
3. One (1) 70 MMBtu/hr stoker-fired steam boiler;
4. Air Pollution Control Equipment for the Boiler:  a. Limestone injection system;  b. Selective non catalytic reduction (SNCR) with ammonia/urea injection system; c. One 2,500 gallon urea storage tank; and d. Baghouse;

5. Bottom-loading petroleum tank truck loading rack with of two (2) 650 gpm loading arms;
6. One (1) Vapor Combustion Unit;
7. One (1) 1.45 MW Diesel Engine Generator set;
8. One (1) 145 bhp Diesel Engine Fire Pump; and
9. One (1) Cooling Tower and its associated appurtenances.

 The applicant is proposing to construct and operate a 12-million gallon per year ethanol manufacturing facility. The fuel grade ethanol will be manufactured by processing molasses. The basic process involves fermenting, distilling, and dehydrating. Support processes include power and steam generation and ethanol storage and distribution. The facility is expected to operate 24 hours per day and 8,360 hours per year.

The two scrubbers used in the plant will emit volatile organic compounds, carbon dioxide, and water vapor. The facility is subject to the federal Standards of Performance for New Stationary Sources, Title 40 CFR, Part 60, Subpart VV, Standards of Performance for Equipment Leaks of VOC in the Synthetic Organic Chemicals Manufacturing Industry.

The steam boiler may be fired on coal, fuel oil no. 2, and specification used oil. The steam boiler is subject to the federal Standards of Performance for New Stationary Sources, Title 40 CFR, Part 60, Subpart Dc Standards of Performance for Small Industrial-Commercial-Institutional Steam Generating Units.

The diesel engine generator and diesel engine fire pump will be fired on fuel oil no. 2. The diesel engines are subject to the federal Standards of Performance for New Stationary Sources, Title 40 CFR, Part 60, Subpart IIII, Standards of Performance for Stationary Compression Ignition Internal Combustion Engines.

The ADMINISTRATIVE RECORD, consisting of the APPLICATION and non-confidential supporting materials from the applicant, the permit review summary, and the DRAFT PERMIT, is available for public inspection during regular office hours, Monday through Friday, 7:45 a.m. to 4:15 p.m., at the following location:

Oahu: Clean Air Branch, Department of Health 919 Ala Moana Boulevard, Room 203, Honolulu, Oahu
Kauai: Office of the Chief Sanitarian, Department of Health 3040 Umi Street, Lihue, Kauai

All comments on the draft permit and any request for a public hearing must be in writing, addressed to the Clean Air Branch at the above address on Oahu and must be postmarked or received by December 9, 2006.

 Any person may request a public hearing by submitting a written request that explains the party's interest and the reasons why a hearing is warranted. At the sole discretion of the Director of Health, DOH may hold a public hearing if a hearing would aid in DOH's decision. If a public hearing is warranted, a public notice for the hearing will be published at least thirty days in advance of the hearing.

Interested persons may obtain copies of the administrative record or parts thereof by paying five cents per page copying costs. Please send written requests to the Oahu office of the Clean Air Branch listed above or call Mr. Stuart Shoji at the Clean Air Branch in Honolulu at (808) 586-4200.

Comments on the draft permit should address, but need not be limited to, the permit conditions and the facility's compliance with federal and state air pollution laws, including: (1) the National and State Ambient Air Quality Standards; and (2) HRS, Chapter 342B and HAR, Chapter 11-60.1.

 DOH will make a final decision on the permit after considering all comments and will send notice of the final decision to each person who has submitted comments or requested such notice.

Chiyome Leinaala Fukino, M.D.  Director of Health  Posted on or before: November 9, 2006

HDOH Rules of Practice and Procedure: Subchapter 2: General Procedure for Contested Case


Accounting for Greenhouse Gas Emissions

Farming is energy intensive. Irrigation is powered by the electrical grid. Fossil Fuel based fertilizers and pesticides are used as inputs. Farm equipment is powered by diesel engines. After the biomass is created, it must be converted into ethanol.

Maui Ethanol submitted an application to the Clean Air Branch of the Hawai`i Department of Health for a proposed ethanol facility on Kaua`i. According to their application, each gallon of ethanol created from biomass would require 4.18 pounds of imported Australian coal. In terms of energy content (BTUs), the coal input would account for 58-63 percent of the ethanol output.

Picture two processes:

(A) 1.2 gallons of oil pulled out of the ground. After shipping, refining and transporting to the retailers, 1.0 gallons are available to the end user as gasoline. The emissions would come from the extraction of 1.2 gallons of oil.

(B) Ignoring the energy needed to generate biomass, assume that you need 1.2 gallons of ethanol to have the same energy content as 1.0 gallons of oil, to create the 1.2 gallons of ethanol you use 5.0 pounds of coal, to use 5.0 pounds of coal you must extract 5.5 pounds of coal from the ground. The emissions would come from the extraction of 5.5 pounds of coal and the creation of 1.2 gallons of ethanol.

Which does more harm in terms of (1) Greenhouse gas emissions; (2) Environmental destruction; (3) Environmental Justice? (A) 1.2 gallons of oil; (B) 5.5 pounds of coal & 1.2 gallons of ethanol

The problem is that ethanol proponents are not even considering the question.

Ethanol proponents argue that: (1) Farm energy use should not count towards fossil fuel BTUs needed to make ethanol since the crop would be produced anyway; (2) Depletion of soil fertility should be ignored; (3) Total emissions should be ignored; (4) Cellulosic Ethanol is around the corner (or perhaps 10 years away). It is important to have the ethanol infrastructure in place for the time when genetically-engineered bacteria convert genetically-engineered energy crops into cheap ethanol.


Ethanol: Good idea or just sweet talk?

State rushing towards ethanol economy without looking at health or environment
Editorial by Henry Curtis, Haleakala Times, May 23, 2006

Ethanol has become the new buzz word. Hawaii is now mandated to use a 10 percent ethanol mix in the gas for our cars, but what exactly is ethanol?

Ethanol is a hydrocarbon created from agricultural crops, such as corn and sugar, and used as a substitute for gasoline.

Its counterpart is biodiesel, a heavier product containing more carbon atoms per molecule. It is also created from agricultural crops as well as waste oil and is used as a substitute for diesel.

Agricultural products used for ethanol and biodiesel can be crops grown specifically for fuel, co-products of various agricultural processes and recovered products from waste material.

Maui Biodiesel converts used cooking oil and grease trap oil into useable biodiesel. This reuse decreases both the need to import oil and the need to landfill waste oil. Currently Maui Biodiesel produces around 200,000 gallons a year.

Maui Ethanol LLC is planning to build an ethanol plant at Pu‘unene. If approved, this plant is designed to produce 12 million gallons of ethanol a year.

State law mandates the use of ethanol in our gas tanks, ostensibly to reduce oil imports, but Hawaii does not currently grow crops for ethanol. So now we are importing fossil fuel and molasses to make ethanol, while we are rapidly taking land out of agriculture to grow more houses.

Hawaii needs to carefully examine all the issues and impacts surrounding ethanol – and there are many – before going full-speed ahead.

Hawaii’s aggressive ethanol campaigns

Both the Hawaii Department of Business, Economic Development and Tourism (DBEDT) and the state Legislature are pushing forward with aggressive pro-ethanol campaigns.

The 2006 Legislature passed SB 2957 CD1 which mandates that the state Dept. of Economic Development and Tourism (DBEDT) spend $200,000 “to conduct a statewide multi-fuel biofuels production assessment of potential feedstocks and technologies, the economics of the various renewable fuels pathways, and the potential for ethanol, biodiesel, and renewable hydrogen production to contribute to Hawaii’s near-, mid-and long-term energy needs.’’

The legislation also mandates that the Hawaii Department of Agriculture spend $150,000 ‘“to provide assistance to the agricultural community interested in developing energy projects, especially for the production of biodiesel from energy crops and cellulosic ethanol from agricultural waste streams, and to seek funding that may be available from the United States Departments of Agriculture and Energy.’’

Neither of these studies, nor any other study funded by the 2006 Legislature, is required to look at environmental and health impacts surrounding these issues.

For Maui, growing crops for energy will have two very visible environmental impacts – land kept in agriculture and water diverted from streams for these crops — as well as health impacts caused by the burning of the energy crops in the ethanol process.

Land and water = food versus energy

Converting land currently used for food production to energy production might increase energy self-sufficiency at the expense of agricultural self-sufficiency.

Pitting two sectors of the economy against each other could have disastrous and unintended consequences for Hawaii, the most isolated archipelago on the planet.

An alternative approach would be to use surplus agricultural lands for energy-producing crops.

In either case, ethanol crops would provide a way to keep central Maui green. Land that would otherwise be available for residential developments and shopping centers would remain green.

Maui is faced with competing demands for its existing water supply. These include agriculture, urban developments, hotels and time-share condos, and in-stream flow standards to support local ecosystems. A significant increase in water demand for energy crops could heighten these already tense struggles over water use.

There are numerous impacts which are not being analyzed as Hawaii races towards an ethanol economy.

Growing new crops will increase agricultural runoff containing inorganic nutrients, herbicides and insecticides, which significantly impact streams and coastal waters.

Air pollution, global warming and GMOs

Ethanol and gasoline both generate air toxins in their production and in their use. Ethanol has higher levels of certain pollutants, and produces its own unique chemical compounds. Crop production and ethanol manufacturing produce emissions which affect global warming.

Monocropping and pesticide spraying negatively impacts our local flora and fauna, depletes soil quality, and decreases biodiversity.

Currently the biotech industry is evaluating ways of genetically engineering crops to increase their energy yields. Regulation of genetically engineered food crops is practically non-existent now and regulation of genetically engineered energy crops is even less, even though it may involve the same crop, such as corn.

Many proponents of ethanol are focusing on a futuristic technology. An oversimplification of plants is that they are composed of three parts:

1) Cellulose – The plant cells are made of cellulose.

2) Lignin – Lignin is a glue-like material that binds the cells together and provides structure, enabling plants to grow tall without having bones. Together, cellulose and lignin are called lignocellulosic material. This material represents the major land-based biomaterial of the planet.

3) Starches – The third part of plants are the starches, which provide the energy plants need to grow. Starches are currently used to create ethanol.

The dream of agricultural and genetic engineering scientists is to find a way of using lignocellulosic material to produce cellulosic ethanol.

The Natural Resources Defense Council, a proponent of using switch grass (panic grass) to generate cellulosic ethanol, supports spending billions of dollars to jumpstart the ethanol industry. According to NRDC, if several technological roadblocks are solved simultaneously, then the cellulosic ethanol industry should be able to break-even in 2015.

Ethanol represents one possible future technology.


Testimony re proposed large biodiesel refinery on Maui using imported Palm Oil  (BlueEarth)

Testimony in House Finance Committee (March 30, 2007)
For: BlueEarth * ILWU * Maui Chamber of Commerce * Plumbers Union * HECO
Support the Intent: Hawaii Farm Bureau
Against:   Beth McDermott * Bill Akiona *  Hawaii Audubon  * Kat Brady * Life of the Land  *    Pacific Biodiesel *  Sawit (Palm Oil) Watch (Indonesia) *  Sierra Club, Hawaii Chapter *  Sierra Club, Maui Group * Windward Ahupua`a Alliance

Testimony (March 15-29, 2007)
For:   BlueEarth  *  MECO  * DBEDT  
Comments:  Dept of Budget & Finance
Against: Environmental Defense Fund *  Sustainable Biodiesel Alliance  * Pacific Biodiesel  *  Life of the Land   * Maui Tomorrow   *   Sierra Club, Maui Group    *    Sarah Preble  *  Doc Berry 

Pacific Business News (November 3, 2006) HECO will consider biodiesel to fuel its newest power station By Eric PhillipsPacific Business News. ''Stahlkopf said he's favoring importing palm oil from Southeast Asia because it has one of the highest yields of any crop.''  http://pacific.bizjournals.com/pacific/stories/2006/11/06/story6.html

Honolulu Star-Bulletin (February 18, 2007): Maui biodiesel plant planned: The proposed $61 million facility would generate energy from replenishable sources By Wendy Osher. A proposed $61 million refinery on Maui would produce renewable biodiesel fuels for Maui Electric Co.'s largest power plant, officials said yesterday. ''BlueEarth Maui Biodiesel LLC hopes to start operating a refinery in 2009 with imported oils -- probably palm oil, company spokesman Ray Sweeney said yesterday. ... Palm oil from the Pacific Rim and South America would be the starting fuel stock, Sweeney said. ... Some oil palms can produce three to four crops a year, said HECO Chief Technology Officer Karl Stahlkopf.'' http://starbulletin.com/2007/02/18/news/story03.html

The Maui News (February 18, 2007):  $61 million project a start to ending use of petroleum. By Harry Eager, Staff Writer ''BlueEarth says it is planning to use palm oil 'imported from around the Pacific Rim and South America from suppliers that practice sustainable palm production.'''  http://www.mauinews.com/story.aspx?id=27836

Honolulu Star-Bulletin (March 26, 2007): Company plans to mass-produce biodiesel in Kapolei By Diana Leone dleone@starbulletin.com ''BlueEarth hopes to start operating the first phase of its refinery in 2009 with imported oils -- probably palm oil, said its company spokesman Ray Sweeney.'' http://starbulletin.com/2007/03/26/news/story03.html







 Ethanol Subsidies

The International Institute for Sustainable Development (IISD) launched the Global Subsidies Initiative (GSI) in December 2005 to put a spotlight on subsidies—transfers of public money to private interests—and how they undermine efforts to put the world economy on a path toward sustainable development.  Subsidies are powerful instruments. They can play a legitimate role in securing public goods that would otherwise remain beyond reach. But they can also be easily subverted.   “Biofuels: At What Cost? — Government Support for Ethanol and Biodiesel in the United States”


Life of the Land is a  Hawaii-based, Hawaii-focused environmental and community action group. Founded in 1970, the mission of Life of the Land is to preserve and protect the life of the land through sustainable land use and energy policies and to promote open government through research, education, advocacy and, when necessary, litigation. We believe that people are part of the environment. We are known for research, research, research. We cover complex issues such as genetic engineering, climate change, and quality of life issues. LOL is a 501(c)3 charitable organization. We do not attend fundraisers, testify for/against political and/or administrative candidates, nor do we rank candidates. We work on issues not people.

Contact: Life of the Land, 76 North King Street, Suite 203, Honolulu, Hawaii  96817,  Executive Director: Henry Curtis, henry@lifeoftheland.net * Assistant Executive Director: Kat Brady, katbrady@hotmail.com

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