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Home My WebLink AboutCOM 0066.020 2004-2006Harry Kim Mayor' DATE County of Hawaii DEPARTMENT OF RESEARCH AND DEVELOPMENT 25 Aupuni Street, Room 109 • Milo, Hawaii 96720-4252 (808) 961-8366 • Fax (808) 935-1205 F -mail: chresdev@co.hawaii.hi.us October 28, 2005 TO: Stacy K. Higa, Council Chair and Council Members FROM: Margarita L. Hopkins: % Economic Developm n c li t RE: FINAL REPORT Name of Grant Program: GeoPowering the West Federal or State Grantor: DBED&T County Grantee Department: Department of Research & Development Grant No. (IF KNOWN): LOA -05-025 Amount of Grant: $9,560.00 Amount of County Match: None County Revenue Account No.: 3303.65 Grant Period (Commencement & Completion): Sept, 2, 2004 to Sept. 30, 2005 Goals: To establish a Hawaii Island Geothermal Direct Use Working Group, to conduct community outreach and disseminate information on geothermal direct use applications appropriate for Hawaii County. Jane H. Testa Director Diane L. Ley Deputy Director Objectives: Convene a Working Group with broad representation, secure the services of a facilitator to facilitate and record the meetings, hold six (6) Working Group meetings, conduct at least three (3) public informational meetings, collect and give out print copies of geothermal direct use materials to the community through meetings of the Working Group, public informational meetings and other means. Form FR o. fes W Note: Attachment is on file in the Clerk's Office. Cpryyn, NO: Hawai'i County is an Equal Opportunity Provider and Employer Ref. Rc�f�W . Date GEOPOWERING THE WEST PROGRAM LOA -05-025 FINAL REPORT October 1, 2004 -September 30, 2005 Submitted By: Margarita Hopkins Economic Development Specialist County of Hawaii, Department of Research and Development 25 Aupuni Street, Room 109 Hilo, Hawaii 96720 Tel. (808)961-8366 FINAL REPORT October 1, 2004 to September 30, 2005 GEOPOWERING THE WEST PROGRAM LETTER OF AGREEMENT LOA -05-025 fi T TMMAR Y This is the final report of the GeoPowering the West program. The U.S. Department of Energy, through the State of Hawaii Department of Business Economic Development and Tourism (DBEDT) authorized a $9,560 grant to the Hawaii County Department of Research and Development to establish a working group to support utilization of direct use of geothermal heat, provide information on direct use of geothermal heat to the community and to solicit community input relating to direct use of geothermal heat suitable and acceptable to the community. The grant period was started on September 2, 2004 and ended September 30, 2005. The Scope of Services listed under the Letter of Agreement LOA -05- 025 between DBEDT and The Hawaii County Department of Research and Development was accomplished. The semiannual report submitted to DEBDT on April 8, 2005 provided a detailed listing of the activities that were completed between October 1, 2004 to March 31, 2005. During that period, the Hawaii Island Geothermal Direct Use Working Group was established and materials were prepared for the first public meeting held on April 21, 2005. During the second half of the project, the Group met on three different occasions. One of the Group's meetings was held concurrently with a public information meeting in Pahoa on August 16, 2005. The other two meetings were held on July 21, 2005 and August 31, 2005. At these meetings, plans were made to insure adequate community participation at the public meetings and the continued participation of the Group in the development of a feasibility study of viable direct use businesses was explored. The first public information meeting was held on April 21, 2005 at the Leilani Estates community center. On August 16 and 17, 2005. Dr. John Lund, an internationally recognized expert on geothermal direct use conducted presentations at four (4) additional public meetings: the Hawaii County Council's Committee of Human Services and Economic Development; the agriculture businesses; the Pahoa community, and the Rotary Club of Hilo Bay. INTRODUCTION The U.S. Department of Energy, through the State of Hawaii Department of Business Economic Development and Tourism (DBEDT) authorized a $9,560 grant to the Hawaii County Department of Research and Development to establish a working group to support utilization of direct use of geothermal heat, provide information on direct use of geothermal heat to the community and to solicit community input relating to direct use of geothermal heat suitable and acceptable to the community. The Letter of Agreement is in Attachment 1. The grant period was for one year, which started on September 2, 2004 until September 30, 2005. This is the final report of that project. The goals and objectives of the project were Goal A. Establish a Hawaii Island Geothermal Direct Use Working Group Objective A.I. Convene a Working Group Objective A.2. Develop goals and objectives for the Working Group Objective A.3. Secure the services of a facilitator and recorder/secretary for meetings Objective A.4. Hold at least 6 meetings of the Working Group Goal B. Perform Community Outreach Objective 3.1. Convene at least 3 public information meetings Objective B.2. Meet with members of the community Objective B.3. Solicit ideas on use of the County's Geothermal Asset and Royalty Funds Goal C. Disseminate Information on Geothermal Direct Use Applications Objective C.1. Identify existing information appropriate to Hawaii County Objective C.2. Obtain and distribute copies of selected publications ACCOMPLISHMENTS During the first six months of the project (October 2004 to March 2005), the Hawaii Island Geothermal Direct Use Working Group was established. Three meetings were held to identify capable individuals for membership in the Group, to formally establish the group and to plan and prepare pertinent materials for the first public meeting on April 21, 2005. Details of those activities are contained in the first semi-annual report (see Attachment 2). The remainder of the project's goals and objectives were attained during second six months of the project. Specifically, Goal A. Establish a Hawaii Island Geothermal Direct Use Working Group Meetings 4, 5 and 6 of the Working Group and the public informational meetings were facilitated and :recorded by a trained facilitator. The fourth Working Group meeting was held on July 21, 2005. Attachment 3 is the report and agenda of this meeting. The main purpose of this meeting was to evaluate the first public information meeting held at Leilani Estate community center in April 21, 2005, solicit from members ideas on how to improve the succeeding community informational meetings and to plan Dr. Lund's participation in the public informational meetings. An update of the status of current grant and the subsequent grant for the feasibility study of geothermal direct use were also discussed. The fifth Working Group meeting was held in Pahoa Community Center on August 16, 2005 concurrent with the public: informational meeting. Refer to Attachment 7 for the report of the meeting. Members of the Working Group that did not attend Dr. Lund's earlier presentations were very appreciative of the opportunity to see his presentation and learn more about geothermal direct use. The sixth Working Group meeting was held in k:eaau Community Center in August 31, 2005. Attachment 4 is the report and agenda of the meeting. The meeting dealt with the evaluation of the public information meetings and discussions on how to proceed with the implementation of the feasibility study grant. Goal B. Perform Community Outreach The first public informational meeting was held on April 21, 2005 at Leilani Estates Community Center. Attachment 5 is the meeting report and agenda. The goal of the meeting was to solicit input from the community in identifying geothermal direct use businesses that are suitable and acceptable to the community. The target participants were members of the board of directors of the community associations of the three main subdivisions in the Kapoho area and local residents with prior involvement in geothermal issues. -he format of the meeting involved setting up four stations staffed by members of the Working Group with expertise in four identified areas of interest: Geology and Hydrology of Lower Puna; PGV Operations; Potential Applications of Direct Use; and County Permitting and Geothermal Asset & Royalty funds. This format proved to be effective in. engaging attendees in one- on -one discussion with experts on specific issues. Three public information meetings were held on August 16, 2005 and a fourth on August 17, 2005. Dr. John Lund was invited by the Working Group as a resource person during these meetings to provide opportunity to potential users of geothermal direct use direction and advice in their specific interests. He made Powerpoint presentations on geothermal direct use applications in various parts of the world and its potential applications to Hawaii. One of the public information meetings was for the County Council members. The Group believed that it was important to education the Council members about the various business applications of geothermal direct use and its substantial economic benefit to Hawaii's economy. It was hoped that by providing the Council members adequate information about the subject and providing an opportunity to discuss their concerns with a renowned expert on the subject, the Council would be supportive of the feasibility study grant scheduled for hearing before the Finance Committee the following day. Dr. Lund's presentation was placed in the agenda of the Committee of Human Services and Economic Development upon the request of the Department of Research and Development on August 16, 2005. Dr. Lund's presentation was broadcast on the Public Access channel. An evaluation of this; meeting is found in Attachment 4. The report of the meeting with the agriculture business group is contained in Attachment 6. The participants of this meeting represented eight(8)commodity groups. Interest among the participants was very high. The PowerPoint presentation of Dr. Lund included a list of agribusiness applications of geothermal direct use for Hawaii. A potted orchid business expressed interest in accessing the waste heat from the PGV as soon as possible. The report of the public information meeting in Pahoa is in Attachment 7. The participation from the community was disappointing in spite of the Group's effort to inform the community about the meeting. The meeting was; announced on the radio for several days prior to the meeting and letters were sent to community associations and individuals with prior involvement with geothermal. The press release sent to the local newspaper was not published. The format of this meeting followed the same format as that of the first public informational meeting. Andrea Gill of DBEDT made arrangements for Dr. Lund to speak to the Rotary Club of Hilo Bay at its regular membership meeting held in August 17, 2005. An evaluation of that meeting is in Attachment 4. Over 50 Club members attended the meeting and interest in certain geothermal applications was expressed. The greatest interest shown during the community outreach work was by the County Council, the agricultural and business communities. The general public exhibited minimal interest or concern for the development of geothermal direct use. Goal C. Disseminate Information on Geothermal Direct Use Applications Appropriate for Hawaii County. Copies of Dr. Lund's presentations and current informational materials on geothermal direct use, Q&A handout on geothermal direct use and other materials were made available at all four public information meetings. The map showing existing geothermal and water wells in Puna area was updated and was displayed at the meetings. Dr. Lund also brought reference materials and provided internet addresses for geothermal direct use. Refer to Attachment 8 for Dr. Lund's presentations and Attachment 9 for the public outreach materials. FUTURE WORKING GROUP ACTIVITES The following are actions that the Group could pursue: 1. Evaluate the current membership of the Group to insure that businesses that are potential beneficiaries of the geothermal direct use are represented. 2. Members of the Group have to commit to attend the Group meetings. The attendance at the Group meetings has been poor. 3. Identify and implement an effective strategy to increase community participation in community meetings in order to gain community support for this program. 4. Work with the County Council in amending current rules that govern the use of the geothermal asset and royalty funds so that the funds can be accessed for the development. of suitable geothermal direct use businesses for the County. 5. Provide advice and direction in the conduct of the feasibility study of direct use geothermal projects. NONT06" The invoice is in Attachment 10. 1lWEX61:IaIa)0a 1. Letter of Agreement 2. First Semi -Annual Report 3. Report and Agenda of 4th Working Group Meeting 4. Report and Agenda of 6th Working Group Meeting 5. Minutes and Agenda of First Public Informational Meeting 6. Report of Meeting With Agricultural Community 7. Report of Meeting With Pahoa Community 8. Dr. Lund's presentations 9. Public Outreach Materials 10. Invoice ATTACHMENTS 1. Letter of Agreement 2. First Semi -Annual Report 3. Report and Agenda of 4th Working Group Meeting 4. Report and Agenda of 6th Working Group Meeting 5. Minutes and Agenda of First Public Informational Meeting 6. Report of Meeting With Agricultural Community 7. Report of Meeting With Pahoa Community 8. Dr. Lund's presentations 9. Public Outreach Materials 10. Invoice Attachment 1 Letter of Agreement DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM LMOA LMGLE O�� THEOOORE E. W STEVE BRIERDEPUTYDNECMR smTE01e MOUSTIIB DIVISION Telptimw (Sped SU-3WI 23$SaM tWMNi SoeM. LsfA K&mWwnel& BI*, 5N FbW. HonohA4 FWU 96813 Fac (aDS) 557.4820 MdrgA4Far P.O. Box 2350. Habuh M 28801-2350 Web she w-W.hRWaLQft*0dV*t September 2, 2004 LE'I"TER OF AGREEMENT IAA -05-025 County of Hawaii Dept. of Research & Development 25 Aupuni St., Room 219 a Hilo, Hawaii 96720 Attn: Dr. Raymond Carr Dear Dr. Carr: This letter confirms an Agreement between the Department of Business, Economic Development, and Tourism (DBEDT), hereinafter referred to as STATE, by its Director's Designated Representative, Maurice H. iiaya, Energy Program Administrator (REPRESENTATIVE) and the County of Hawaii, hereinafter referred to as CONTRACTOR, whose principal address is 25 Aupuni St., Room 219, Hilo, Hawaii 96720, federal ID #99-6000567 for services related to the GeoPowering the West program including the establishment of a Hawaii Island Geothermal Direct Use Working Group, community outreach, and information dissemination. The parties hereto agree to the terms, conditions, and provisions as follows: Scope of Services. CONTRACTOR shall provide the following services: A. Establish a Hawaii Island Geothermal Direct Use Working Group. CONTRACTOR shall: 1) Convene a Working Group with broad representation such as but not limited to: members of the geographical community proximate to the Puna Geothermal Venture power plant, agricultural commodity groups and extension agents, government agencies, experts on the geothermal resource and on geothermal direct use, Puna Geothermal Venture, and other Counties with potential geothermal resources. EXHIBIT "A" 2) Develop goals and objectives for the Working Group, such as but not limited to: improve public awareness of direct use opportunities; identify and resolve barriers to utilization of geothermal heat in Puna; provide input to County on use of geothermal asset and royalty funds; and provide guidance to feasibility study for geothermal enterprise park, if funded. 3) Secure the services of a facilitator and recorder/secretary to convene, facilitate, and prepare minutes of meetings. 4) Hold at least six meetings of the Working Group. These may be concurrent with one or more "public information" meetings to which the general public is also invited. B. Perform Community Outreach. CONTRACTOR shall: C. 1) Convene at least three public information meetings, including at least one featuring a nationally- or internationally -recognized expert in geothermal direct use, to inform participants of direct use applications implemented elsewhere and to stimulate discussion of direct use opportunities in Puna. 2) Meet as appropriate with members of the geographical community, that is, residents, businesses, and landowners in the area near the Puna Geothermal Venture power plant, and also with agricultural commodity groups and others to provide information on direct use applications. 3) Solicit ideas on how to make use of the County's geothermal asset and royalty funds to support direct use enterprises and/or for other purposes. 1) Identify existing publications, such as but not limited to factsheets, CDs, technical guides, journal articles, posters and brochures, containing information on geothermal direct use that is appropriate for Hawaii County. 2) Obtain or print copies of selected publications and distribute to the community through meetings of the Working Group or other means. D. Reporting. CONTRACTOR shall: 1) Provide semiannual summaries of activities performed under this Agreement. Reports shall be written, and may be submitted in hardcopy and/or electronically. The reports shall include subjects such as but not limited to: Working Group meeting dates, attendees, topics of discussion, actions taken, and conclusions reached, if any. CONTRACTOR shall also attach copies of any materials distributed at the meetings. 2) Submit for prior STATE approval a draft final report including a summary of the accomplishments of the project and the CONTRACTOR's evaluation and recommendations. Upon approval, submit final report in both hardcopy and electronically. 2. Time of Performance. The services described herein shall commence on the effective date of this Agreement and all services under this Agreement shall be completed by September 30, 2005, unless sooner terminated as hereinafter provided. This Letter of Agreement may be extended for a total period of time not to exceed three (3) months. However, the initial extension shall not exceed one (1) month with one additional extension allowable that shall not exceed two (2) months. The CONTRACTOR shall submit any extension request in writing for STATE approval a minimum of one (1) month prior to the termination of the contract. Said request shall provide detailed reasons for the delay in and steps to be taken to ensure the timely completion of the project. If the STATE approves the extension request, an amended Letter of Agreement shall be executed by both parties in accordance with the General Conditions. The CONTRACTOR shall not be entitled to any additional compensation to complete the work described in the Letter of Agreement. 3. Matching Funds. CONTRACTOR is not required to provide matching funds. 4. Compensation and Method of Payment. In consideration for services to be rendered under this Agreement. STATE agrees to pay a total sum of money not to exceed NINE THOUSAND FIVE HUNDRED SIXTY AND NO/100 DOLLARS ($9,560.00), tax inclusive. Any reasonable modification in the scope of work that does not materially add to the cost of work shall be performed without extra payment on account of those changes. Modifications in the scope of work must be mutually agreeable to the STATE and the CONTRACTOR and confirmed in writing. Payments shall be made by STATE, upon satisfactory completion of services and submittal of original invoices, in accordance with the following provisions: A. FOUR THOUSAND AND NO/100 ($4,000.00) upon submission of a semiannual report including a record of a public meeting featuring nationally recognized expert(s) in geothermal direct use, as described in Paragraph A. L through D.1 "Scope of Services," herein. B. FIVE THOUSAND FIVE HUNDRED SIXTY AND NO/100 ($5,560.00) upon submission of approved final project report, as described in Paragraph A.1. through D.2 "Scope of Services," herein and satisfactory completion of all services. 5. General Conditions. The State of Hawaii, Department of Business, Economic Development, and Tourism, General Conditions, are attached hereto as Attachment A and made a part of this Agreement. In the event of a conflict between the General Conditions and Special Conditions of this Agreement, the Special Conditions shall prevail. 6. dial Conditions. The acceptance of this Agreement by the CONTRACTOR serves to bind said CONTRACTOR with regard to CONTRACTOR'S fulfillment of all the terns, conditions, and provisions as set forth in this Agreement. Maurice H. Kaya, Representative Energy Program Administrator Date: SEP ` 2 20 Attachment: General Conditions Special Conditions P.O. #00005968 Attachment 2 First Semi -Annual Report Harry Kim Mayor April 8, 2005 County of Hawaii DEPARTMENT OF RESEARCH AND DEVELOPMENT 25 Aupuni Street, Room 109 • Hilo, Hawaii 96720-4252 (808)961-8366- Fax(808)935,1205 E-mail: chresdevQa interpac net MEMORANDUM TO: ANDREA GILL, DBEDT ENERGY ANALYST FROM: RAYMOND CARR, ENERGY COORDINATOR SUJECT: SEMIANNUAL. REPORT — LOA -05-025 Jane H. Testa Director Diane L. Lev Deputy Director Enclosed please find three copies of the first semiannual report on work carried out under the referenced Letter of Agreement relating to establishment of a Hawaii Island Geothermal Direct Use Working Group. This report covers the period October 1. 2004 to March 31, 2005. I would like to thank you for the close cooperation and assistance you have provided the County in the development of this program to date. C.C. Diane Ley, Deputy Director Hawaii County is an Equal Opportunity Provider and Employer SEMIANNUAL REPORT October 1, 2004 to March 31, 2005 HAWAII ISLAND GEOTHERMAL DIRECT USE WORKING GROUP LETTER OF AGREEMENT LOA -05-025 INTRODUCTION This is the first semiannual report on activities of the Hawaii Island Geothermal Direct Use Working Group funded by a grant of $9,560 from the Hawaii State Department of Business, Economic Development and Tourism (DBEDT) for services related to the `GeoPowering the West' program of the US Department of Energy. SUMMARY In accordance with the Scope of Services of the Letter of Agreement LOA -05-025 between DBEDT and the County, a twelve -member Working Group (WG) has been formed with broad representation of the geographical community proximate to the Puna Geothermal Venture (PGV) power plant, relevant government agencies, local business interests, an expert on the geothermal resource and the manager of the PGV facility. There are also four resource staff who, though not official members of the WG, contribute important information and services to the Group. Refer to Attachment 1 of the report for a listing of the members of the Working Group. Three facilitated meetings of the Working Group have been held to date. At these meetings, members were provided information on geothermal direct use and the program being embarked on by the County. Early WG members assisted in the expeditious recruitment of other members who provide comprehensive representation of the local community and Hawaiian culture. WG members have also provided advice and assistance in organizing the first public meeting scheduled to be held in April 2005. As now constituted, the Working Group is composed of committed members who work effectively together and who provide the knowledge, expertise and background that is required for the successful implementation of the Direct Use program. DISCUSSION This scaion of the report refers to Tasks A, li and C of the better of Agreement LOA -05-025. A. Establish a Hawaii Island Geothermal Direct Use Working Group The first WG meeting was held on December 9, 2004 in Hilo. Attachment 2 is the report on this meeting. The main short term goals and action items resulting from the meeting were to \C'G S,M, Ann.aA Report 41 doe Page 1 of 3 compile accurate educational materials including a brief handout and to gather more members for the Working Group. The second WG meeting was held on February 3, 2005 in Keaau in the district of Puna. Refer to Attachment 3 for the meeting report. New members were provided background information on geothermal direct use. It was agreed that the WG now included adequate representation and the focus of the action items was to finalize arrangements for the first public informational meeting. It was also decided that this meeting would be held for local community leaders, mainly members of the boards of directors of the community associations of the residential subdivisions of Leilani Estates, Nanawale and Kapoho Beach Lots. On February 22, a meeting was held of an ad hoc Planning Committee of the Working Group with the aim of pre -planning for the first public meeting. Attachment 4 is the report on this meeting. The third WG meeting was held in Keaau on March 3, 2005. Refer to Attachment 5 for the report on this meeting, which was largely, concerned with organizing and preparing materials for the first public meeting scheduled for April 21, 2005. Attachment 1 is the current list of the twelve Working Group members and the interest or expertise that they provide to the group. Also listed are those who have participated in some of the Working Group meetings. While not full members of the WG, these participants provide important direction and contributions to the overall efforts of the Working Group. B. Perform Community Outreach Before this program could be started, the Hawaii County Council needed to authorize Mayor Kim to accept the $9,650 in grant funds from DBEDT. Resolution No. 249-04 together with Ordinance No. 04-125 (Attachments 6 & 7) were passed on November 10, 2004 providing this authorization. The County Council hearings afforded a valuable opportunity to inform Council members and the public (the proceedings were televised on a public access TV channel) about geothermal direct use and the proposed program Attachment 8 is an article published in the October 26 issue of the Hawaii Tribune -Herald subsequent to the first hearing of the Finance Committee of the County Council. This article generated inquiries about the program from local business concerns that could benefit from geothermal direct use. Subsequent to the March 3 meeting, the Working Group focused its activities on preparing for the first public informational meeting to be held on April 21 at the community center of the Leilani 1^states subdivision. The format for this rneeting, calls for setting up four tables staffed by resource persons with knowledge of the geology and hydrology of the Kapoho arca, Puna Geothermal Venture operations, applications of direct use, and the County's permitting process and Geothermal Royalty and Asset funds_ Maps and other visual aids are presently being developed to help elucidate these aspects of geothermal direct use in the Kapoho area. Page 2 of 3 C. Disseminate Information on Geothermal Direct Use Applications Appropriate for Hawaii County. The Working Group has developed a Q&A handout on direct use (Attachment 9). This has been distributed together with brochures from the US Department of Energy including `Geothermal Today' and `GeoPowering the West'. Two diagrams entitled `Uses of Geothermal Heat' and `An Example of Direct Use Utilization of Geothermal Heat' (Attachments 10 & 11) have been prepared for use at the public informational meetings. A map showing existing geothermal and water wells in the Kapoho area is also currently being developed. FUTURE WORKING GROUP ACTIVITIES Experience gained from the April 21 public meeting will be utilized to optimize the second public informational meeting which will target the entire local community and which may include a nationally recognized expert of geothermal direct use as a resource person. The current Energy Coordinator for Hawaii County, Raymond Can, is scheduled to retire effective June 1, 2005. The County is presently taking steps to recruit a replacement who, among other duties, will assume responsibility for managing the Working Group initiative. Given the continued close cooperation and expertise provided to date by Andrea Gill of the local DBEDT office, this transition is expected to proceed smoothly and effectively. FINANCIAL REPORT No invoice is submitted with this report Page 3of3 z w U H Q a_ N� 0: W m W IL (9 CDZ O D ♦O V ni aLi m m m c c m - rn °n'0 Z m .0 3 .... m Y O O y m a) y O o o = E m `oY a°i ain L�j c c a a) C �Cl No (`Vvi= •O w Wim°) a) Ec 3 Z, 0 �0 n' U m 7 L m O 7 v- O_ c o a) 'C o � a) f0 E2 Y c c N m > Z°' v a) rn `0 aa)) cIL �U) 0 coo � C7 3 LL CL o m a m E 7 o 0 a 7 m '_` a' c o a o m U m a) a a DC7 a 'in o 0- a ooY c >mornCmd a m L a) Z� o E a) N ��° a W- °�°-aoi m cam° oEa>> U) o moma)�Nc Ucc o o am O w -°CL Y �a axs E U N N c y.- o 3� m� O_ C J O O m-0 0) y aCci U L 7 r m C 'U L C U c m m /n (o O o 'V>i m? N Q O N a 7 7 N a ° C m L V CF.�c� cN- N c� o aa)) O ,^Z) ZC9='@ m�C7-j v_ tiEm :E cm�w `omm Nv a U7 g oo0Y a)0 a) - o r _a'@ CL a) y w�°� _ Ema _ oon anmac) 0 C M.N a O cL 7 v o a) C O O 7 N — C O m a) a) O C .N.. c N C 7 n N m w N 3 X N° U N O a) .N N' a) o N 3 N N m y a) a) N a) y fn a) O N m '° y a1 U C a) N `° N y a) °) C a) > 0) W m •p L a fn y a) a L 'O C> -0 C O y N C m a) U '0 C y a) O_ b C > V> 0 c c> o m > a) o U `> O> 0 z y d C 0> 7 O m 250 > a) EX a) mM m on_ ma na o� ma` m m waYa o m o� mCL o° Y a n Q �' o 0 -3: (D o y aT O a�O1ha` co 3r a) >, _ .m C _m O m w N E 0 '0 w O N N c Z rn m m o'0�j S U m m ` c m 2 F' c 3 m a' ` o w ° c o m@ Q mCD d m m m y> Q O n U .>, C ,� 7 O O a) Q) r J N .>. c OL-� y N O Co `� LL 7 70�`0�0o C 70 oda CX U LL Q p O U QU y o N c c(`L ° c LL Q mL �m IL - _N� Z 0 0 -@ O O my C O m � a m O a) F- _>U (a o� N c N c O c 3 o a� E y o 3 a) y c c E c o o w w w N c_ L mo7om� cm SCD ma)� m �y� yo mo' a) =UNU20 wSrnooa22 a cn(96 a JU wU a 2 c O > 2 U) U o ° c ayi U WC y U m w 7 y O O O 7 m mQ a U O a) Q06 E o U OL m,`�UY �Z06 m 06 E 6 o cyll m - o .o7 .a> Of N E LL¢ cc -6 E Qm @m d S m SN a) m E m af o 2' 3 2Ji ma) cCQ o o Ya O m O O LU O ] .Nm3 U o O O -1 U. c C: o � m c o m O o Urn ° m c i o > >- m N W 3 c mL.> 0 3 C) U -i< o C)_ C) _' aYn�� v a 01 = U Yi � m W Lm m Y c m O ° E N Q m c6 `L Z _U Y � �' O .0 a m O Cy Q a) J Q m L m Q - O X !n m O J 7 Z m Of _ -N C Ul G O �! m _ O c (D 3 Q o m ° Y c N o` E a _ m m a U =CL3 Y Y a O U 0 a) E>J J U _ __YF7- GEOTHERMAL DIRECT USE CORE GROUP MEETING #1 December 9, 2004 Attendance ATTACHMENT 2 Ray Carr, Hawaii County R&D Margarita Hopkins, Hawaii County R&D Andrea Gill, DBEDT-SID Alice Kawaha, Hawaii County Planning Don Thomas, UH Hilo/CSAV Deborah Chang, Hawaii County Resource Center Bang Mizuno, PGV Louise Winn, Hawaii County Resource Center Eileen Yoshinaka, US DOE Barbara Lively, Hawaii County Resource Center Priscilla Thompson, DBEDT-SID Skip Bethea, Hawaii County Legislative Auditor Status of Grants Grant#1: $10,000 Letter of Agreement is approved. Emphasis of this money will be for working group meetings as well as at least 2 community meetings which will include Native Hawaiian groups and various target community groups as well as the general public. Stipends will be paid to facilitators and recorders. Grant#2: $100,000 Now that President Bush has signed the bill, the full amount may be available in one fiscal year rather than $30K to be spent by September 2006 and the remaining $70K by 2007. No cash match is required, in kind contributions will be tracked. Most of this money will be spent on consultant services to assess the community acceptance and to draw up feasibility studies. Public information activities will continue during this phase. Does not include any implementation funding Geothermal Asset & Royalty Funds: 4 homes were purchased and resold so the Royalty Fund was partially restored. The Planning Department wants more community input re: expenditure of the royalty and asset funds. Any changes to the operation must be by ordinance and changed in the County Code. Present balance exceeds S 1.2 million in each of these funds. Duties/Characteristics of the Direct Use Working Group ► Represent constituencies by including up to 15 members, some of whom will come and go, i.e., lumber interests, fermentation, ag commodity, native Hawaiian groups . Working group should be stakeholders as well as neutral people_ ► Work with community for input — 2 way street."Present information to stakeholders such as Leilani Homeowners Association, Pahoa Business Association, Kapoho residents. Gather concerns and questions informally before community presentation. ► Emphasize cooperative activities which could expand later. Emphasize PGV will not profit, no new wells to be drilled in near future, use good examples of "Direct Use" ► Provide input to the consultant Page I of 2 ATTACHMENT 2 SHORT TERM GOALS: #1: Compile accurate information in educational materials. #2: Gather informal feedback from your contacts. #3: Incorporate this feedback/concerns into public presentation. #4: Gather more working group members from this process. ACTION STEP: Andie and Ray will develop a brief handout for use right away. MEETING #2 TIME/DATE TO BE ANNOUNCED Page 2 of 2 ATTACHMENT 3 MEETING REPORT Geothermal Direct Use Working Group Meeting Feb. 3, 2005 I: Introductions by all group members. Attendance was as follows: Raymond Carr, Coli -R&D Lei Kapono , Hawaii Community College Deborah Chang, CoH-HCRC Keikialoha Kekipi, Ho'olu Lahui Andrea Gill, DBEDT-SID Barry Mizuno, PGV Margarita Hopkins, CoH-R&D Don Thomas, CSAV Barbara Lively, CoH-HCRC (Facilitator) NOTE: Lei Kapono and Keikialoha Kekipi were new members of the Working Group II: Overview of GDU and the Local Program Andrea Gill gave a general overview of Geothermal Direct Use and provided relevant background information, including: • Federal Funding was being provided through the US DOE with most of the funding expected in February 2005 • The Working Group was just starting its activities and could be involved in soliciting public input up to early 2007, the target date for completion of the program. • The two main aspects of the program are public outreach/education and a feasibility study to be carried out by a contractor competitively selected by the County • This study would address only non -electric uses of geothermal energy • Regulatory issues would be a component of the study Two grants have been awarded by the US DOE: $10,000 for setting up facilitation by the Working Group of at least six meetings, three of which will be with the public, and $100,000 for a consultant to develop a feasibility study of viable direct use businesses, as well as a continuation of Working Group activities. Barry Mizuno provided an overview of the Geothermal Asset and Royalty Funds each of which currently has a balance exceeding $1.0 million_ He noted that the Asset Fund is permit driven with yearly contributions by PGV and is intended to mitigate impacts of geothermal development n the surrounding community. PGV also pays royalties for using the geothermal resource; 50% goes to the Hawaii State Land Fund, managed by DLNR, 30°4, to the County of Hawaii's Geothermal Royalty Fund and 20% to the Office of Hawaiian Affairs. The Royalty Fund presently can only be used to relocate certain residents near PGV, and has been used by the County to purchase and resell several qualifying homes (at a loss) near to the PGV site. Keiktaloha Kekipi raised some questions related to the Kyoto agreement and global environmental changes. How do we know what long-term effects are? He asked about the sustainability of such a project especially in regard to the demand for water and the Page I of 3 ATTACHMENT available ground water resource. In response it was noted that this program did not involve drilling of new wells for electricity production and would involve making use of what is already available. In the power production process used by PGV, what is taken out of the ground is put right back. Geothermal allows us to reduce the use of fossil fuels and emissions are minute compared to traditional power plants. The resource is also extensive. Don Thomas briefly characterized the geothermal resource noting that water circulates naturally through the underground magma -heated system in the in Kilauea rift zone at 600 degrees. 3.5 million gallons of water are naturally discharged per day and any pumping of water for direct use purposes shouldn't impact water quality. He noted that in 1961 a 600 -ft deep well naturally discharged water at 190 degrees Fahrenheit. At this point of the meeting, there was further discussion of the role of the Working Group to provide input and advice to the consultant and to anticipate questions and concerns from the community. It was felt that the processing of food products would likely be of interest as a business activity. It was noted that a community association created a certified kitchen in Volcano at the Cooper Center and that setting up an incubator kitchen utilizing geothermal waste heat might be attractive to the community in Puna. III: Review of Q&A and Handouts Comments were as follows: • Label the vertical axis of the `Uses of Geothermal Heat' handout "Water Temperature". • Include an incubator kitchen as an example of direct use. IV: Need for Further Community Representation? Which, if any, additional stakeholders should be brought on board. It was noted that At Detweiller representing the Leilani Estates Community Association was committed to the program but unable to attend this meeting. Rob Tucker a business owner in Pahoa had also indicated a willingness to participate but was not present at this meeting. Lono Lyman of the Kapoho Land Company was also involved, but like Jenny Perry, a papaya grower was not at the meeting. It was noted that Councilman Gary Safank had already been apprised of the direct use initiative. Ray Carr felt that there was already adequate representation of stakeholders on the Working Group and that we should not actively seek to increase membership so as to keep the size of the group at a manageable level.. V: Setting Up the First Public Meeting It was agreed that the public meetings should be held close to the geothermal resource area with Leilani Estates and the Pahoa Community. Center as potential locations. While some community leaders may be aware of the direct use initiative, it would be a new concept to most of the local community. Deborah Chang's suggestion of setting up topical information booths was welt received; this would permit one-on-one discussions between members of the public and experts in each of the selected topical areas. Page 2 of 3 ATTACHMENT It was also suggested that, before setting up the fust public meeting, it would be beneficial to first target community leaders so as to get a better idea of the issues and concerns likely to be raised in a full public meeting. Leilani Estates, Nanawale and Kapoho are close to the geothermal resource area and all have functioning boards that could be invited to this initial meeting with community leaders. Visuals need to be developed for the meeting with community leaders. They should be clearly defined and present information in a way that people can readily grasp. An example of an incubator kitchen should be included. The Geo -Heat Center and the Geothermal Education Office are potential sources of some of these visuals. Lei Kapono recommended that the presentation should stat with a brief description of the origins of this Direct Use initiative. Ray Carr undertook to incorporate this, together with a little of his background and personal interest in the project into his public meeting introduction (opening speech). There was further discussion of the purpose of the Working Group which Ray Carr outlined as follows: • To introduce the concept and potential of direct use to the public • To discuss and provide inputtsuggestions to develop educational tools visuals, Q&A sheets, maps, schematics • Plan and implement public meetings incorporating public responses when needed • Provide guidance for consultant VI: Action Steps and Next Meeting Date for the Working Group Ray Carr undertook to do the following: • Contact Al Dettweiler to set up a meeting with community leaders from Leilani Estates, Nanawale and Kapoho — target a date before the end of March 2005. • Serve as contact person for handout feedback and issue meeting summaries to members of the Working Group • Include a task in the consultant's contract that will address locating possible funding sources for direct use businesses. Andrea Gill will work on revisions to handouts Don Thomas will provide hydrology maps and maps of existing wells. Next Working Group Meeting Date: Thursday, March 3 at 4.00 p.m. at the Ola'a Community Center. Page 3 of 3 ATTACHMENT 4 MEETING REPORT GEOTHERMAL DIRECT USE (GDU) WORKING GROUP 'PLANNING COMMITTEE' This is to report on a meeting between Deborah Chang, Andrea Gill and Ray Carr (the 'Planning Committee') that was held on February 22 with the aim of pre -planning certain aspects of the informational meeting on direct use to be held in late March/early April with members of the Board of Directors of the community associations of Leilani, Nanawale and Kapoho subdivisions, and other invitees. General Format of Meeting It was agreed that the format would be as discussed at the February 3 meeting of the GDU Working Group with tables (stations) set up and staffed by GDU resource personnel who would respond to inquiries from meeting attendees. Meeting Agenda A brief introduction by Ray Carr to the GDU study — how it came about, its purpose, methodology, funding sources and schedule for completion. Also brief introductions of the resource personnel — allow 15 minutes. Attendees will then peruse the information presented at the tables and discuss the project with the resource personnel staffing the tables — allow 30 minutes (up to 45 minutes if needed). A Q&A session facilitated by Ray Carr who will then conclude the meeting — allow 15 minutes [Post -its could be provided for attendees to write questions and suggestions at each station. These would be collected, sorted into categories and then answered by the appropriate resource persons during the Q&A session.] It was felt that five stations should be set up manned by resource personnel as follows: Geology of the Kilauea East Rift Zone as it relates to the geothermal resource, and the availability and chemistry of the hot water (shallow well) resource - Don Thomas PGV operations relating to providing waste heat for direct uses - Barry Mizuno Geothermal Direct Use, emphasizing Hawaii experiences - Andrea Gill Asset & Royalty Funds and County Regulations - Alice Kawaha Information about the "fresh" water resource in Kapoho as experienced by the Hawaii County Dept. of Water Supply (DWS), and pertinent information on water wells - Clyde Young Action Items Ray Carr will contact Don Thomas, Barry Mizuno, Alice Kawaha and Clyde Young of DWS to discuss their involvement, setting up their stations and assisting them with making suitable display items. Andrea Gill will identify State agency representatives with responsibility for permitting of water wells and geothermal development for possible uses as resource people at future meetings. Page 1 of 1 ATTACHMENT MEETING REPORT Geothermal Direct Use Working Group Meeting March 3, 2005 Introduction by all group members. Attendance was as follows: Raymond Carr, CoH-R&D Deborah Chang, CoH-HCRC Andrea Gill, DBEDT-SID Margarita Hopkins, CoH-R&D Lei Kapono, HCC Barry Mizuno, PGV Susie Osborne, Kua O Ka La PCS Don Thomas, CSAV Rob Tucker, Pahoa Main Street Clyde Young, CoH-Dept. of Water Supply Barbara Lively, CoH-HCRC (Facilitator) New members welcomed to the Working Group were: Susie Osborne, Principal at Kua O Ka La Public Charter School in Kapoho. Susie is the spouse of Keikialoha Kekipi, her alternate on the Working Group. Rob Tucker, Business Owner in Pahoa and member of 'Pahoa Main Street'. Clyde Young, Engineer with the Hawaii County Department of Water Supply. Approval of minutes of the February 3 meeting of the Working Group. A motion to approve the minutes of the February 3 meeting of the Working Group was unanimously passed. Organizing the proposed meeting with the boards of directors of Leilani Estates, Nanawale and Kapoho subdivisions. Ray Carr outlined the report of the February 22 meeting of the ad hoc Planning Committee of the Working Group. Deborah Chang gave a brief overview of the proposed format of the first public informational meeting. Individual information tables would be set up and staffed by appropriate resource persons. (She noted that post -it notes could be provided for written questions and statements; WG staff would organize these for inclusion in the Q&A session later on in the meeting. An alternative approach would be to have a drop box for questions that would be answered in writing later by members of the Working Group. However, it was felt that the less formal post -it note approach would be more appropriate at this meeting.) After a short introduction to the informational meeting by Ray Carr, attendees would visit the various tables and discuss aspects of the GDU program with the four or five resource persons. They would then reassemble as a large group for a O&A session, further discussions and wrap-up. There was general consensus on this format for the meeting and discussions moved onto more specific aspects, including the informational tables to be set up: • Geology/Chemistry Table: It was agreed that standard maps can be hard for some lay persons to understand. Discussions followed on the best way to present the information using easy to understand maps. Don Thomas suggested displaying a topographic map of the Puna district showing the location, temperature and depths of existing shallow geothermal wells. He noted that the hottest well was at about 200 degrees F. He recalled the well on the Malama Ki Ag Research station as being in the range of 140-150 degrees F, and indicated that temperatures generally declined as one proceeded further North of the rift zone. Page 1 of 2 ATTACHMENTS Puna Geothermal Venture (PGV) Table: Barry Mizuno stated that there were three production and four injection wells on the PGV site at this time. Rather than focusing on how PGV produces electricity from its deep geothermal wells (which is not the aim of the GDU initiative), he felt it would be more appropriate to show a schematic illustration of a system to exchange heat from the geothermal brine to a fresh water supply that would then be transferred to a site for direct use applications. While he felt it preferable that this site be located on a property near to PGV, it could also potentially be located on the perimeter of PGV's lease. Discussions followed on the length of water piping required; Andrea Gill pointed out that this would be one of the aspects to be studied in detail, by the contractor in assessing the viability and cost effectiveness of direct use. • Direct Use Applications Table: Andrea Gill will staff this table showing various potential GDU applications. She would also refer to prior experiments carried out in the 1980's at the HGPA facility that included hot water for bottom heating greenhouse operations, food/lumber dehydration, pasteurization of soil -growing media as well as some artisan applications using the by-product silica that was available with that process. • Planning Table: Ray Carr suggested this station provide information on the Geothermal Asset and Royalty funds together with other aspects of the County's planning and permitting role in the area of geothermal resources. Department of Water Supply (DWS) Table: Clyde Young indicated he was prepared to staff a station that would respond to inquiries about the fresh water resource in lower Puna and any potential impacts of direct use/shallow wells on these resources. Andrea Gill pointed out that the permitting process for (potable) water wells, as shown on DLNR's web site, is complex and hard to interpret. Don Thomas noted that DOH regulations might not apply for the non -potable wells involved in direct use applications. It was also pointed out that the consultant hired under the $100,000 grant would be researching the regulatory requirements of GDU development. Discussions then centered on setting a date and location for the informational meeting to be held with members of the boards of directors of the local subdivisions. The second week of April was tentatively settled on. Ray Carr had visited the meeting room of the Leilani Estates community association and felt it was well suited to a meeting of up to thirty people. It was decided that Working Group members would wear nametags at the informational meeting. Action items: Ray Carr would contact Al Dettweiler of the Leilani Estates board of directors to decide on a suitable date for the informational meeting and will inform all Working Group members of the final date/time. Susan Osborne will then contact Mike Gleason, President of the Kapoho Association Barbara Livelv will also contact a representative of the Nanawale Association. Next Working Group meeting: No date was set for the next full Working Group meeting. Ray Carr will coordinate with WG members who are to staff informational tables to decide how their stations will be set up. Page 2 of 2 ATTACHMENT COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO. 249 04 RESOLUTION AUTHORIZING THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM, PURSUANT TO HRS 46-7, FOR A GEOPOWERING THE WEST GRANT WHEREAS, the U.S. Department of Energy, through the State of Hawai'i Department of Business, Economic Development, and Tourism, has authorized funding for the Hawaii County Department of Research and Development's GeoPowering the West Program; and WHEREAS, opportunities exist for utilizing the available geothermal heat in the Kapoho region of the Puna District for purposes besides electricity generation; and WHEREAS, the potential exists to enhance the district's agriculture and commercial fishing activities as well as other enterprises with the application of geothermal direct use; and WHEREAS, the grant funds will be used to establish a working group to support utilization of the direct use of geothermal heat to provide information on direct use to the community, and to gather input from the community for consideration by the County government and other interested parties; and WHEREAS, the working group will also address issues related to a feasibility study for a direct use geothermal enterprise park; and WHEREAS, Hawai'i Revised Statutes, Section 46-7, requires that county departments obtain the consent of the council to enter into agreements with.the federal or state govemments respecting action to be taken pursuant to any of the powers granted by law to furnish, expend, and receive any funds or other assistance in connection with projects being or to be undertaken pursuant to those powers. Page 1 of 2 NOW; THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII, in accordance with section 46-7, Hawaii Revised Statutes, that the Mayor of the County of Hawaii is authorized to execute, on behalf of the County, an agreement and related documents with the State of Hawaii Department of Business, Economic Development, and Tourism, to enable the County to execute its GeoPowering the West program as described in the letter of agreement, attached hereto and incorporated herein by reference as Exhibit W. BE IT FURTHER RESOLVED that the County Clerk of the County of Hawai'i shall transmit copies of this resolution to the Office of the Mayor, the Finance and Research and Development Departments. Dated at Hilo , Hawaii, this 10th day of November , 2004. INTRODUCED BY: COUNCIL MEMBER, C UNTY OF HAWAII COUNTY COUNCIL County of Hawai'i Hilo, Hawaii 1 hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County ofitawat'i on _ NnvPmheL,.LIl� 7004 A frs r ROLL CALL VOTE Reference C-796/13ill 346/FC-331 OU, COUNTY CLERK CIrAIRMAN & PRESIDING OFFICER RESOLUTION NO. 249 04 Page 2 of 2 AYES NOES ABS EX ARAKAKJ X CHUNG X ELARIONOFF x HO[.SCHU[r X JACOBSON REYNOLDS X X SAfARIK X X T ULANG TYLER_ X 6 0 3 0 - Reference C-796/13ill 346/FC-331 OU, COUNTY CLERK CIrAIRMAN & PRESIDING OFFICER RESOLUTION NO. 249 04 Page 2 of 2 ATTACHMENT 7 COUNTY OF HAWAII STATE OF HAWAII BILL NO. 346 ORDINANCE NO. 054 1S2 AN ORDINANCE TO AMEND ORDINANCE NO. 04-74, AS AMENDED, TIE OPERATING BUDGET FOR THE COUNTY OF HAWArl FOR THE FISCAL YEAR ENDING NNE 30, 2005. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECITON 1. Ordinance No. 04-74, as amended, is hereby further amended by appropriating revenues in the following amount(s) to the fwd(s) as sa forth in Section 2. Account No. Sour Fund Anwunt 3303.65 Federal Grants-Gcopowaing the West Casal S 9,560 Total S 9,560 SECTION 2. The foregoing an=nl(s) as specified in Section I hereof istare hereby appropriated to the following fund(s) and upaditum accormt(s) as act forth herein below: Account No. Emdicn and Activity Fund Amount 010-161-5163.04 Gcopowering the West General S 9,560 Total S 9,560 S=ON3. A final report, or Ore final report required by the grantor, shall be submitted to the Cotmcd upon oorrpletton of the grant program(s). SECITON 4. This ordinance shall take of W upon its approval. Introduced By: Council Mcnlw, County of Hawaii Kona ,Hawaii 1)mc of Introduction: November 10, 2004 Datc uC la Readmg. November 10. 2004 Datc of2nd Rcading: November 24, 2004 6ffcc[,� Datc becember 0. 2004 RIFE; CNCF: CA : 796/Res. 249-04 Printer Friendly :: s%utuall - Twlibune W Herald Hawaii going geothermal? Group formed to help study uses for water heated by the volcano By DAVE SMITH Tribune -Herald staff writer Andrea Gill hopes to teach farmers that being in hot water is not necessarily a bad thing. Gill is in charge of a project that will seek to find additional uses for volcanically heated water found underneath much of Puna. A County Council committee last week approved a bill accepting a federal grant to set up a community working group to study possible uses which include the drying of fruit, aquaculture and plant nursery operations. While Puna Geothermal Venture uses steam from deep wells near Pohoiki to generate up to 35 megawatts of electricity, most of the geothermal energy tapped around the world is used for purposes other than generating power, Gill said. Page 1 of 2 ATTACHMENT 8 Print Page Geothermal Venture is seen in the distance Monday from the patio of the abandoned Pohoiki information center, built in the 1980s adjacent to the HGP -A demonstration project, where drilling commenced in the late 70s. Steam from that project was originally used to dry fruit. WILLIAM ING/Tribune-Herald The energy analyst with the state Department of Business, Economic Development and Tourism said geothermal -produced heat is used for heating homes and greenhouses in Europe and de-icing roads in Oregon. .,e most of Hawaii has no need for such uses -- including the raising of alligators in geothermally heated water in Idaho -- there are plenty of other proven avenues for the resource. She said chances are the flaked, dehydrated onions you use in the kitchen were geothermal -dried. She said it may even be possible, if enough heat can be found, to manufacture ice for use by the many fisherman who ply the waters off lower Puna. Other possible uses include raising of aquarium fish and in plant nurseries where the heat could be used to encourage quicker growth of seedlings or to pasteurize potting soil. On a more personal level, the water could be used to fill hot tubs at a spa. A demonstration project in the late 1980s using steam from the state's first geothermal project, the HGP -A well in Pohoiki, was successful in drying a variety of fruits. That well was permanently capped in 1999. Gill said PGV is wilting to participate in the project by providing heat from the geothermal brine that is left over from the generation process. The brine, which started out as 600 degree steam, still measures up to 400 degrees when it is pumped to injection wells. That is plenty hot to do a lot of stuff with," she said. Barry Mizuno of PGV said because of the terms of operating permit, the brine cannot leave PGV property so a way would have to be found to move the heat elsewhere. He said it would involve some kind of heat transfer, such as using the brine to heat other water, Mizuno said - Gill said shallow wells could also be drilled to tap into Puna's naturally heated aquifer -- which already provides the "hotat the county's Ahalanui Beach Park which is also known as Hot Ponds. wells would not reach far enough to hit steam so there would be no danger of blowouts or noxious gases, she said. "We want to help farmers make use of a resource that's right under their feet," she said. hltp:' W%v%% h �' liitribune-herald.com articles'200410/26/local_news localhl.prt -1 T'200� Printer Friendly :: Pa,,e 2 of The council's Finance Committee approved a $9,560 grant from the U.S. Department of Energy's "Geopowering the West" r,^eram. The funds will be used to hire an energy coordinator and are a precursor to a $700,000 federal grant, Gill said. Dave Smith can be reached at dsmith@hawaiitribune-herald.com All rights reserved. Copyright © 2005 Hawaii Tribune Herald. Content on this site may not be archived, retransmitted, saved in a database, or used for any commercial purpose without the express written permission of Hawaii Tribune Herald. Close Window Ix] http://w"-ibune-herald.comiarticles/2004/10/26/local_ncws/local0l.pil 4.7/2005 Harry Kim Mayor ATTACHMENT County of Hawaii DEPARTMENT OF RESEARCH AND DEVELOPMENT 25 Aupuni Street, Room 219 " Hilo, Hawaii 967204252 (808)961-8366- Fu(808)935-1205 E-mail: chresdev@intcrpac.net About the Direct Heat Utilization of Geothermal Energy Study Jane H. Testa Director The County of Hawaii, with support from the State and funds from the U.S. Department of Energy, is beginning a study of ways that direct heat from geothermal energy could benefit businesses and the community in lower Puna. Here are some questions and answers about the study. Q1: What is "direct utilization of geothermal energy"? "Direct utilization' (or "direct use') means using geothermal heat for non -electric purposes. Worldwide, common direct uses of geothermal energy include aquaculture, drying agricultural products, heating buildings, heating greenhouses, and spas. Q2: What will the study include? 1) Sharing information on direct uses of geothermal heat with residents of lower Puna (Pahoa, Kapoho, Pohoiki, Leilani Estates, etc.) and discussing their thoughts about direct use opportunities; 2) Conducting a feasibility study to identify costs and benefits of potential direct use business opportunities and to determine if its a good idea to locate several of the enterprises together in an 'incubator" park so that small businesses can test and implement ideas inexpensively; and 3) Learning if support for geothermal direct use is something for which the community thinks the County's existing Geothermal Royalty Fund and Geothermal Asset Fund should be used. Q3: What kinds of businesses will be studied? The study will identify a variety of businesses that could make use of geothermal heat. Among the suggestions thus far are: greenhouse bottom heating, lumber drying, pasteurizing growing media for greenhouses, providing cold storage for fishing and other enterprises, aquaculture, spas, and drying fruits, vegetables, or fish. Other ideas that support current agricultural activities in Puna will be sought from residents and businesses in the area. Q4: What hot water resources will be studied? There are two main resources that could support direct use businesses. One is the waste heat from Puna Geothermal Venture's power plant. The other resource is the hot groundwater that underlies the lower East Rift Zone of Kilauea. This groundwater is naturally heated—between body temperature and boiling—at relatively shallow depths, less than 1,000 feet. It could be pumped to the surface using normal water wells Q5: How will information be shared? The County of Hawaii is establishing a working group to facilitate communication with the community. There will also be public information sessions. Q6: Will there be any construction, drilling, etc. as part of this project? No. The project is a feasibility study and does not include any implementation. Q7: How long will the study run? The feasibility study should be completed in early 2007. Discussion and communication with the public will continue throughout the study period. Haran County is an Lqual Opportunity Employer �.-7 Flash & Dry Steam ;eotherma Power Plants Binary Seothermal Power Plants ATTACHMENT 10 Uses of Geothermal Heat Typical direct (non -electric) uses of geothermal energy at different ®® temperatures [Cement & Refriger- regate ation& ying _,7 o Icemaking Ethanol, n Onion& Biofuels Garlic roduction C/(f Drying Lumber Fabric Drying Dyeing^� Fruit Vegetable Drying Concrete `Block Curing Green - housing Mushroom 'A' e Sod Steil zation Culture J; Aqua �r culture's Bathing �G+orhermal Educators We Zoos merm,I mann org ro.�,�r,r�o•ao.,z� wm s�io.mwr�a�o�. w...ni,x,o.r� Sugar aporatil & Pulp Drying Food Processing —x Building Heating & Cooling Water Heating Blanching, Cooking Pasteur- ization aseur- ization Biogas , Production Geo- ---- 5011 thermal Warming Heat — --- Pumps Illustrates existing, past, and proposed uses worldwide. 'Cool wafer is added as needed to make the temperature just right for the fish An Example of Direct Utilization of Geothermal Heat User Application' Backup Unit Heat�Excchaanger ❑ �� To Disposal - Geothermal Water F7 Working Fluid For many direct uses of geothermal heat, hot water is pumped from fairly shallow sources. The heat may be transferred to a "working fluid," which could be potable water or even air, using a heat exchanger. (In other cases, such as aquaculture or spas, the geothermal water might be used directly, without a heat exchanger.) *The "user application" could be a dehydration unit for fruit, vegetables or fish, such as the one illustrated below. Heat would be delivered at point #5, the "heater," which is a heat exchanger. In this illustration, hot geothermal fluid or heated potable water would enter the heat exchanger, and the fan would blow air across it, heating the air, which is then used to dry the produce. The arrows show the path of air flow. 1. Air Inlet 4. Fans 2. Air outlet 5. Heater 3. Adjustable valves 6 Pallets with trays Gaphe concepts courtesy of thment of Energy and the Oregon Institute of Technology's Geo -He t Center Prepared by State of Hawaii Department of Business, Economm Development, and Tounsm in coopereuon with the County of Hawaii Department of Research and Development, January 2005 Attachment 3 Report and Agenda of 4th Working Group Meeting Attachment 3: Report and Agenda of 4's Working Group Meeting Geothermal Direct Use Working Group Meeting July 21, 2005 Introduction by all group members. Attendance was as follows: Margarita Hopkins, CoH-R&D Steve McPeek, CoH-HCRC Andrea Gill, DBEDT — SID Barry Mizuno, PGV Mike Kaleikini, PGV Facilitator: Barbara Lively 1. Group Member Introduction and Approval of minutes of the March 3, 2005 meeting of the Working Group Group members introduced themselves. A motion was made to approve the minutes of the March 3 meeting of the Working Group and it was unanimously approved. II. Feedback on the April 21, 2005 Community Meeting in Leilani A. Poor attendance: Although a good number of people said they would attend, the turnout was poor. In spite of this, the meeting went well. Potential reaons for the low turnout were discussed. It could be that the selective invitation process hindered some from coming. Others might have stayed away due to the perceived ties to PGV. Some may have had the perception that the process would be `Same old, same old." Some may still lack understanding of what geothermal direct use is and thus, stay away. B. Format of meeting: The format of having informational tables worked well and was very constructive. There were good presentations with knowledgeable resource people. C. Suggestions for next community meeting: In looking towards the next community meeting, the following suggestions were made: • Some of the elements of the first community meeting should be retained. • The educational tables should be set up again so people can visit them after the guest speaker is finished with his talk. Dr. Lund should use a power point presentation. Meet ahead of time with potential contentious individuals and groups. It is stated that this problem does not seem to be as bad as it once was. III. Grant Status A. The $10,000 grant ends in September 2005. Money still remains for the last 2 Working Group meetings and the last community meetings. The 3 August meetings will fulfill the requirement of conducting 2 community meetings. One Working Group meeting will be held concurrently to the community meetings, with one Working Group meeting to follow. The final meeting will be utilized to summarize and to lay groundwork for hiring a consultant to do the feasibility study. Even after the grant ends, the Working Group will remain intact. The $100,000 grant: a resolution was heard in the Finance Committee on July 21, 2005 and passed with one statement of concern expressed by Councilman Jacobsen. He requested that a former study done under the administration of Mayor -Inouye that was never released to the public be reviewed and taken into account by the consultant. The resolution will go before the full Council on August 3, 2005. After the resolution passes the Council after the second reading, Margarita Hopkins will submit it to Mayor Kim for signature. Upon the Mayor's approval, funds can be used. One of the major tasks ahead of the consultant will be to identify feasible uses and users. The consultant will need the continued guidance of the Working Group. The Council will meet one final time on August 17, 2005. IV. Dr. John Lund A. Presentation Schedule • Tuesday, August 16, 2005, 9:00 AM: Hawaii County Council, Human Service and - Community Development Committee Meeting, possible attendees include Dr. Holschuh's committee members and other Council members, 15 minute presentation with following question and answer time. • Tuesday, August 16, 2005, 1:00 PM — 2:30 PM Agriculture/Business Group, possible attendees include nursery owners, papaya growers, Winkler Wood, practical 15 minute presentation with following question and anwer time. • Tuesday, August 16, 2005, 5:00 PM — -7:30 PM, Community Meeting, practical 30 minute presentation with following question and answer time at work tables. This talk should demonstrate applications and flush out ideas for geothermal direct use. B. Suggestions from the Working Group It is suggested that Dr. Lund use video or still photos to show actual uses of geothermal direct use capabilities, especially those that might apply to the Hawaiian situation. He -might also be asked to provide on site consultation. He will be asked to keep the presentation practical (and less technical) and to give a general overview of the national and global situation. C. Purpose of meetings The purpose of all 3 meetings is to first of all inform participants about geothermal direct use possibilities, secondly to get community input and suggestions re: possible uses and users, and to ensure public understanding of the process. V. Miscellaneous A. Andrea Gill presented the updated map showing the location of geothermal wells. The following suggestions were made previously and incorporated into the updated map: • Indicate where plugged wells are • Provide more landmarks for better orientation • Show water temperature of wells excluding the deep, exploratory wells One additional revision also needs to be made: • Marking for Well KS 13 needs to be adjusted B. A discussion was held re: attendance at the Geothermal Resources Council annual meeting. C. A discussion was held about the replacement for Ray Carr. VI. Action Items • Margarita Hopkins will speak with Bill Gray re: procurement of a consultant so that the expenditure of the funds will happen on a timely basis as required by the grant. Andrea Gill will process this on the state level. • Identify venues for all 3 meetings • Advertise and invite for all 3 meetings. • Inform non -present Working Group members about the community meetings and ask them to attend and set up the same informational tables used at the April community meeting. • Andrea Gill will follow up on a possible Rotary Club presentation by Dr. Lund on August 17'h. • Mike Kaleikini will inquire re: the availability of the Akebono Theater and the Pahoa Hongwanji Hall for the large community meeting.. • Margarita Hopkins will follow up on possible P& R facilities for the larger community meeting. • Margarita Hopkins will identify a location for the agriculture/business group meeting and contact possible attendees for this meeting. • All Working Group members are asked to invite once the venues are secured. VI. Next Working Group Meeting The next working group meeting will be decided upon after the community meetings. Meeting was adjourned at 5:30 PM. Attachment 4 Report and Agenda of 6th Working Group Meeting Attachment 4: Report and Agenda of 6`' Working Group Meeting Geothermal Working Group Meeting August 31, 2005 Introduction by all group members. Attendance was as follows: Margarita Hopkins, CoH-R&D Steve McPeek, CoH-HCRC Andrea Gill, DBEDT_SD Barry Mizuno, PGV Mike Kaleikini, PGV Clyde Young, DWS Lei Kapono, HawCC Extension Services Jerry Bragdon, Realtor Al Detwieler, Community Representative Facilitator: Barbara Lively I. Group member introductions and Approval of minutes of the August 16, 2005 Community Meeting in Pahoa Group members introduced themselves. A motion was made to approve the last meeting minutes and was unanimously approved. The group was informed that Steve McPeek put out minutes for (3) of the meetings for group members to comment/approve: 1) Community Meeting 2) County Council Presentation 3) Ag/Business croup. II. Report on Dr. Lund's Presentations, by Margarita Hopkins A. Dr. Lund's presentation to County Council August 16, 2005: Dr. Lund's presentation was heard in the Human Services and Economic Development Committee on August 16, 2005, which is normally chaired by Dr. Fred Holschuh. Dr. Holschuh was absent so Stacy Higa chaired the committee. It was remarked that the Council had called a recess prior to the presentation after having a pretty hectic morning. The Council appeared to be attentive and interested asking many appropriate questions. Councilman Jacobson was proactive and supportive. Councilman Hoffmann asked what the council can do to help move this project forward, i.e., rules and regulations, considering geo-asset fund(s). The presentation was well received and seemed to be a welcome change for the council members. The next day, August 17, 2005, the resolution for the funding passed full council, then went to the Mayor for his signature. A. Dr. Lund's presentation to the Ag/Business Group: Seven different commodities were represented at this meeting. The presentation was received with so much enthusiasm some individuals in the group wanted to begin implementation right away. Dr. Lund gave the group more information on possible uses. The group was given contact information for Tim O'Connell for information on possible grants for funding projects, as there were questions raised from the group about funding sources. The group was also cautioned that for grants over $50,000 "other requirements" would kick in. There were also concerns from the group about transferring the heat for use. The group was informed that there are many variables dependant on each project. B. Dr. Lund's presentation to the Pahoa Community: This meeting was held at the Pahoa Community Center at 6 PM. Only 5 community people actually attended the meeting. The working group members were able to benefit from Dr. Lund's presentation as it helped them to understand more about possible uses and applications. Some suggestions that came from the community participants were; drying lumber, making and storing ice and utilizing the heat for health and wellness purposes. The group was forced to consider what could have been different (for this meeting), how could we have gotten more people to come? This room was chosen because Dr. Lund's presentation needed a room that could be easily darkened. The time was scheduled in consideration of community availability, not to early so people have to rush or feel they can't make it in time, and not to late so people could still make it home in time for dinner and helping kids with homework. C. Dr. Lund's Presentation to Hilo Bay Rotary Club: Andrea reported that Dr. Lund had tailored his presentation for this particular group and due to time constraints he did not use his power point presentation but did distribute handout materials. The meeting was well attended and well received (50 to 60 people). This group expressed no particular concerns and expressed interest in certain applications. M. Feedback from the group A. The group began a discussion of why the community meeting in Pahoa only had 5 community people in attendance. It was discovered that notices were sent out by Janet Snyder (County News) to all the usual contacts, at least 2 weeks in advance. Letters were also sent to individuals. Some members in the group thought that they needed to target groups or people with different interests. The Ag/Business group meeting was well attended because they were able to look at possible benefits for themselves or their businesses. Some in the group thought that some community people probably count on their "leaders" to be there so they don't even bother going themselves. The group felt that it is important to get community input because of the possible impacts projects in the area might have. One group member felt that community identified concerns could provide feedback on potential applications. B. The group began a discussion of whether or not they did enough, as far as outreach to community. Group members unanimously felt that some parts of the strategy worked and some did not. The group agreed that the first community meeting in Leilani, Dr. Lund's presentation(s) to the county council, the agfbusiness group meeting, and the community meeting in Pahoa, and the Rotary Club breakfast was enough to satisfy the requirements of the grant. The group agreed that things could have been done differently which may have increased participation by community members or special interest groups. The group also agreed that something should be prepared as initial "start up" information to put out in the community then try to get some input. More members in the community need to be informed. IV. Grant wrap up, by Margarita Hopkins • l0k grant for: • Organizing Working Group to provide community outreach • Conduct 7 working group meetings (facilitated) • Conduct 3 community meetings (facilitated) • Final report will be distributed to all members • 100k grant for: • Hiring consultant for feasibility study Contract has been approved needs to be completed by DBEDT, then we will start the process of hiring a consultant A. Margarita reported that with this meeting the $10k grant requirements are satisfied. The group now needs to start the process of hiring the consultant to conduct the feasibility study. With the Mayor's signature the monies are available to hire the consultant. Margarita also discussed the role of the working group in the next phase. Margarita asked and the group agreed that there should be more members in the group. Possible members should include: A representative from the UHH Ag extension, individuals that expressed interests at previous meetings, a representative from the fishing group, a representative from Hawaii Forestry, a representative from the Health and Wellness group. Steve McPeek reminded the group that membership needs will change depending on what part of the process the group is working on, as the phases of implementation change so will group membership needs. Margarita cautioned that Ray Carr did not think it was wise to have a group membership that was too large and unmanageable. V. Criteria for hiring consultant A. Margarita informed the group that the Working Group would be selecting a consultant to do the feasibility study. Group members will be expected to advice the consultant as well as direct the study. The group decided to form a (3) member "Selection Committee", Andrea Gill, Don Thomas, Barry Mizuno and Mike Kaleikini agreed to be on the committee. The group then discussed how the consultant would be hired. They discussed (3) different possibilities: 1) RFP 2)Bids and 3) The County Professional List. If they choose the RFP process things they will be looking for will include; Criteria, Evaluation, Time lines and Scope of Services. If the group chooses to go with the Profession List no RFP will be necessary. The group was reminded that the consultant would need to have a unique and complex understanding of the project. It was also strongly suggested that the consultant be familiar with the community. The point was made that a proposal has already been submitted with some general guidelines for the consultant and that this group can better define those ideas. Also not everything will make it into the feasibility study, it might come down to choosing and doing some preliminary sorting, considering what looks and sounds good, what might be feasible and what is acceptable to the community. The comment was made that interviews would be preferred prior to actual hiring. Alice Kuwaha informed the group that when a selection is made from the professional list, it is only after a consideration of their "statement of qualifications" so that only those qualified, available and willing will be considered in the end. It was discovered that statements of qualifications are renewed annually. The question was raised that if there were 13 qualified entities on the professional list, would the selection committee have to consider them all? The group felt that the committee members could pick 3 or 4 that qualified then vote on them, if the vote came out in favor of 1 particular listing then the committee would go with that l and if not they would consider interviewing. VI. Actions items Margarita will get "Scope of Work" document to the group member for their input on the criteria for hiring the consultant (via email). Selection committee: Margarita to provide "Professional Vendor's" list to selection committee members by the end of next week: Sept. 9, 2005 Selection Committee to meet on: Wednesday September 21. VII. Miscellaneous Someone should write something for group to consider: • Criteria for consultant; what should feasibility study include. • Presentation for outreach VIII. Next working Group Meeting There is no working group meeting scheduled. Meeting adjourned at 5:10 GEOTHERMAL DIRECT USE WORKING GROUP MEETING Kea'au Community Center August 31, 2005 4:00pm-5:00 pm AGENDA I. Introduction 11. Evaluation of August 16 and 17 community meetings • Council Committee Meeting • Ag/Business Meeting • Community Meeting in Pahoa • Rotary Club of Hilo Bay Breakfast Meeting III. Wrap up of $10,000 Grant IV. Use of $100,000 Grant • Criteria for selection of consultant • Role of Working Group for next phase V. Miscellaneous VI. Next Meeting Attachment 5 Minutes and Agenda of First Public Informational Meeting Attachment 5: Minutes and Agenda of Public Informational Meeting on Geothermal Direct Use April 21, 2005 SUMMARY This was the first public informational meeting hosted by the Hawaii County Geothermal Direct Use (GDU) Working Group. It was held at the community center of Leilani Estates, a subdivision bordering the Puna Geothermal Venture (PGV) power plant. Attachment 1 is the meeting agenda. The format for this facilitated meeting involved setting up four tables staffed by members of the GDU Working Group with backgrounds in these areas: ♦ Geology and Hydrology of Lower Puna — Dr. Don Thomas of the UHH center for the Study of Active Volcanoes and Clyde Young PE of the Hawaii County Department of Water Supply PGV Operations — Barry Mizuno, Owner's Representative of PGV ♦ Potential Applications of Direct Use — Andrea Gill of DBEDT SID ♦ County Permitting and the Geothermal Asset & Royalty funds — Alice Kawaha of Hawaii County Planning Department. The format for this meeting proved effective as a way to engage community members in constructive discussion of the GDU program. Those staffing the tables were able to provide detailed information and respond to questions and concerns raised by attendees. In light of this, it is intended to use this format in future public meetings. Fifteen persons attended this meeting. Aside from the Working Group members and five staff from PGV, there were only four members of the public, one of whom was associated with 'Malama O Puna', an environmental group previously involved in geothermal issues. There was general support for Direct Use subject to acceptable noise levels and retention of benefits for the community. No strongly anti - geothermal sentiments were expressed. DISCUSSION As decided at the March 3 meeting of the GDU Working Group, this first public meeting targeted members of the boards of directors of the community associations of the three main subdivisions in the Kapoho area - Leilani Estates, Nanawale, and Kapoho Beach Lots. Local residents with prior involvement in geothermal issues were also invited. A total of 28 persons were sent personal invitations either by email or by regular mail. This list is shown on Attachment 2. Ray Carr, the Hawaii County Energy Coordinator, started the meeting with a brief overview of the GDU program — refer to Attachment 3. Attendees then circulated among the four informational tables for about 45 minutes. After this, staff at the four tables gave their summaries of the topics raised at their tables. Don Thomas reported that the general area of discussion at his table was the relationship between: the geology of Puna and the presence of useable warm groundwater; direct use applications and the groundwater system; the impacts of drilling on the regional groundwater bodies; and the impacts of direct 1 use on the local community. Attachment 4 provides a more detailed report of the issues discussed at this table. Barry Mizuno reported on questions about PGV's involvement in the GDU program. He indicated that PGV is a potential provider of significant amounts of heat. Currently, PGV disposes of about 3,000 gallons per minute of brine at 300 degrees F. This brine must be kept within PGV's boundaries. However, heat could be recovered from this stream by means of a heat exchanger and the resulting hot (probably potable) water could be sent off property for direct use applications while the cooled brine would be re -injected per current practice. Andrea Gill reported that attendees picked up a substantial number of the publications that she had placed on her table. She talked about small direct use grants that had already been implemented in the 1980's at the HGPA facility including projects for accelerating the growth of potted palms and the dehydration of agricultural produce. She noted that ideas are presently being solicited from the public for other direct use applications. She was asked about specific aspects of the heat exchange process, soil pasteurization and possible impacts of direct use on the local climate, noise levels, and byproducts and chemicals that might be released into the air. Alice Kawaha reported on access to the geothermal Asset and Royalty funds, noting the handout at her table relating to the County's relocation program. A claim filed under the Asset program is appraised by the Planning Department and then forwarded to the Planning Commission for review and action. Regarding the question of whether these funds can be used for direct use, she indicated that this was not feasible the way the code is presently written. Any change will require amending the county code; this would involve public hearings and a vote of approval by the County Council. In regard to successful past claims on the Asset fund, to date only $6,500 has been disbursed; this was for equipment to monitor noise and air emissions. She reported a current balance of $1.34 million in the Royalty fund and $1.267 million in the Asset fund. Attendees also submitted 'Post Its' with further questions at the tables. These questions were recorded and are listed in Attachment 5. Hand-outs and visual aids were provided at each of the four informational tables, including a draft map in large format of the wells that have been drilled in Lower Puna — refer to Attachment 6. This map is currently being finalized in a collaborative process involving Andrea Gill of DBEDT, Lisa Nahoopii, GIS Specialist in Hawaii County's Department of Data Systems, and other members of the Working Group. COMMENTS FROM ATTENDEES* Further open discussion followed the summaries from staff at the four tables. In regard to suggestions for direct use applications: ♦ Noni, papaya and pineapple and other agricultural crops could provide opportunities to create added - value ventures ♦ A recommendation that a mixed-use facility/kitchen be considered • Making soap from papaya wastes • Drying concrete blocks and making 'Rumbar' (planks made from used tires) ♦ Making ice for the fishermen operating out of Pohoiki small boat harbor * In this context, "Attendees" does not include WG members or PGV staff Attendees felt that the format of the meeting was excellent and that the informational tables helped people digest information. Refer to Attachment 7 for a compilation of attendees' ratings of this meeting. Some were willing to help get the word out to the local community about the direct use initiative and future public meetings. When asked by the facilitator if they had any strong feelings, positive or negative, about the direct use program, attendees felt that it had tremendous potential. They also indicated that they would like to see a program with these attributes: • minimal negative impacts on the residential population ♦ effective abatement of any noise or chemicals ♦ driven by members of the community rather than larger business corporations ♦ affordable for small businesses ♦ no exploitation of free heat for those who have funding capacity ♦ includes educationally driven enterprises 3 AGENDA PUBLIC INFORMATIONAL MEETING GEOTHERMAL DIRECT USE April 21, 2005 2:30 — 2:45: INTRODUCTION by Ray Carr, Hawaii County Energy Coordinator. A brief description of Geothermal Direct Use (GDU); the two grants received from the US Dept. of Energy to fund a study of the potential of the potential for GDU in the Kapoho area of lower Puna; the format for this meeting; introduction of members of the GDU Working group. 2:45 — 3:30: INFORMATIONAL EXCHANGES Attendees are invited to discuss various aspects of this program with members of the GDU Working Group staffing four tables covering the following areas of interest: ♦ Geology and hydrology of lower Puna • Puna Geothermal Venture's perspective of Direct Use ♦ Overview of Direct Use and potential applications ♦ County permitting of geothermal and the Geothermal Asset and Geothermal Royalty Funds administered by Hawaii County. 3:30 — 4:00: DISCUSSION Staff from the four tables will report on the main topics discussed at their stations. Items submitted by attendees on 'Post -Its' will be addressed. There will then be a general discussion of the GDU initiative. 4:00 — 4:30: FEEDBACK Attendees will be asked to provide their assessment of the pros and cons of Direct Use in the local context, highlighting perceived benefits as well as any potential concerns. ATTACHMENT INVITEES TO APRIL 21 PUBLIC GDU MEETING NAME AFFILIATION HOW CONTACTED Board members — names not made available _ Nanawale Community Association 8 letters mailed to Liz Salfen to distribute to Board members W mond Wiles Leilani Estates BoD — President Email Rich Robbins _ Leilani Estates BoD — VP Mail Roberta Hole _ Leilani Estates BoD — Sec. Email Mark Hauanio Leilani Estates BoD Mail Graig Herman Leilani Estates BoD Email Heather Hedenschau Leilani Estates BoD Email Julie James Ka oho Beach BoD Email Richard Thompson _ Ka oho Beach BoD Email Mike Seto Ka oho Beach BoD Email Marvin Dice Ka oho Beach BoD Email Joy Dillon _ Ka oho Beach BoD Email Mike Gleason Ka oho Beach BoD _ Email Rose Clarke Ka oho Beach BoD Email Luana Jones Local resident with prior interest Mail Karl Kirkendall _ Local resident with prior interest Mail Robert Kochy Local resident with prior interest Mail Aurora Martinovich Local resident with prior interest Mail Ginny Perry _ Local resident with prior interest Mail Bob Petricci Local resident with prior interest Mail Rene Siracusa Local resident with prior interest Mail 5 ATTACHMENT INTRODUCTION BY RAY CARR FIRST PUBLIC GDU MEETING - APRIL 21, 2005 My involvement in Geothermal Direct Use effectively started in January of last year when I attended a review and update of the US geothermal industry for Hawaii government leaders and staff. The US Department of Energy had recently launched its initiative called 'GeoPowering the West' which supports the development of (the 95%) untapped geothermal resources in the Western states, and this meeting provided them an opportunity to present their program and gain input about the status of geothermal in Hawaii. Given that our own power plant, PGV, is presently designed to operate at 30 MW and is already permitted for up to 60 MW, a target that will take many years to reach, the Hawaii contingent did not see any need to partner with the US DoE with the aim of producing more electricity. However, many of us at the meeting, were impressed with a presentation by Dr. John Lund about geothermal direct use and felt that this is an area where we might really benefit by partnering with the DoE. Basically, direct use is the term used to cover a variety of commercial applications where heat that is not utilized at the power plant, or geothermally heated water from shallow wells, is used for purposes such as drying fruit and other produce or lumber, aquaculture, enhanced greenhouse operations, soil pasteurization and spas. About twenty years ago, in fact, there a number of direct use projects were investigated at the experimental HGPA plant — if you want to know more about that, you can buttonhole Andrea Gill of the State Energy Office, because she was very much involved in that program. But HGPA was eventually closed down and there hasn't been a focus on direct use since then. We received a positive response from staff at the DoE when we outlined our ideas for partnering with them to investigate the potential for direct use in lower Puna, and we were eventually successful in winning two grants for this purpose. A $10,000 grant was awarded to assist us in setting up a Working Group to inform the public about direct use and to get input on what kinds of commercial applications the community would find acceptable. We have established a Working Group that we believe is representative of local community interests and this meeting today is our first outreach to the public. A second grant for $100,000 was awarded more recently, and these funds will be used to hire a contractor who will identify the most promising applications of direct use in the local financial and social context. The contractor will examine the feasibility of setting up an enterprise park to facilitate establishment of businesses based on direct use, as well as the possibility of accessing monies that have accumulated in the County's Geothermal Asset and Royalty Funds. The scope of work under both of these grants will be managed by County staff - right now, that is myself. Andie Gill provides oversight on behalf of the state - I should note that these grants flow from the US DoE to the state and then on to the County. Today's meeting has a different format from most public meetings. After my brief introduction, you are invited to proceed to any of the four tables that we have set up, staffed by members of the Working Group as follows: Dr. Don Thomas, a professor of geology at the University of Hawaii. He will do his best to answer your questions about the geology and hydrology of this area. He is joined by Clyde Young, a mechanical engineer with the DWS, who can help you with questions about potable water resources. Barry Mizuno, Manager of the PGV power plant who many of you, I'm sure, already know. He will give you his perspective on direct use. Andrea Gill, who I mentioned earlier, can give you an overview of direct use and the applications that we will likely consider in this study Alice Kawaha is a Program Manager in the County `s Planning Department, and she can tell you about County permitting of geothermal as well as the Geothermal Asset and Royalty funds that I mentioned earlier. Before I let you loose on the good people at the four tables, I would also like to introduce the other members of our Working Group who have given of their valuable time to help out today Now I will hand the meeting back to our facilitator, Barbara lively. ATTACHMENT Report by Dr. Don Thomas on Discussions of the Geology and Hydrology of Lower Puna The general area of discussion dealt with the relationships between: the geology of Puna and the presence of useable warm groundwater; direct use applications and the groundwater system; the impacts of drilling on the regional groundwater bodies; and the impacts of direct use on the local community. We discussed the structure of the east rift zone and the presence of buried, still hot, magma bodies in the rift that gradually give up their heat to the circulating groundwater system. It was noted that these heated fluids naturally circulate within the rift zone and, in some areas, are discharged into the shallow groundwater system where temperatures can range from -90°F to more than 200°F. Outside of the rift zone, in Pahoa for example, the groundwater temperatures are lower and the groundwater quality is better because they are free of these naturally occurring discharges. Questions were asked about the impact of direct use of thermal fluids on the groundwater quality and concerns were expressed regarding use of freshwater for direct use. In answer to the former question, the process of using the direct heat was presented wherein an existing well, having encountered heated water, would be used where water would be pumped out of the well, its heat used for an appropriate application, and then returned to the ground. Alternatives to this approach included installation of a heat exchanger in the well that would circulate surface water down through a pipe to the hot zone in the well, where it would extract heat from the aquifer, and then returned to the surface where the heat would be used. In both cases, the groundwater table was not expected to be significantly affected by the use of the hot water. In the discussion of the use of freshwater for direct use applications, it came out that there was a misconception of that use: in reference to using waste heat from the Puna Geothermal Venture facility, the extraction of the waste heat would have to be through the use of a potable water loop since PGV was, by permit, prohibited from transporting their waste fluid off-site. It had not been made clear to the inquirer that the potable water was being used in a closed loop and that the actual demand on potable water supplies would be minimal. With respect to the impacts of direct use on the local groundwater availability, it was pointed out that the present study, and for foreseeable uses of direct heat, that it was unlikely that new wells would be drilled to tap into the heated groundwater in the lower Puna area. The most probable approach will be to use waste heat from the PGV facility or to use existing test wells to evaluate the feasibility of direct use applications. In each case, the actual withdrawal of groundwater from the shallow aquifers would likely be very limited and what water was withdrawn, would eventually be returned to shallow water table. Hence, the impacts of direct heat applications on the availability of groundwater would be insignificant. The concerns regarding the impacts of direct use on the local community were tied to possible emissions of hydrogen sulfide from these applications as well as the possibility that drilling would somehow trigger, or increase the likelihood of, an eruption in the Lower Puna District. In response to the former question, it was emphasized that hydrogen sulfide was not usually found in the shallow, warm ground waters and that the use of this resources was unlikely to result in additional emissions of hydrogen sulfide. Further, since most applications would use these fluids in closed-loop systems, there would be minimal opportunity for the gases to be released to the surface environment. It was also pointed out that, should drilling eventually be done for shallow warm water resources, the depth of those wells would be far too shallow to encounter molten or still plastic magma bodies that are typically expected to reside at depths of 3 kilometers or more below the ground surface. ATTACHMENT LIST OF POST -IT NOTES The following is a list of the Post -It notes that attendees placed at the four informational tables': Geology & Hydrology of Lower Puna ♦ What is a scientific observation hole? ♦ What is the role of the earth's magnetic energy in relation to drilling? ♦ Once the exploratory shallow holes are dug, are they regularly monitored? ♦ Which drilled hole was the hottest? ♦ What were the temps of all exploratory holes? ♦ What is it about the effects of drilling that negatively impacts our native species? ♦ Noise pollution? ♦ Hydrogen sulfide is poisonous at high (levels) - smell's negative - how does it even get released into the air? Will this happen? ♦ What are the byproducts of direct use drilling and heat production? ♦ Longevity of heat? ♦ How far do you have to go to get to molten rock? 8,000, 10,000, -15,000 (ft) gets into "plastic" material? ♦ Where is material still molten within the rift zone? ♦ What is the preferred heat for Direct Use? ♦ Any scientific equivalent of where the next eruption might be? ♦ How do you get general implications of how hot it is down there? ♦ We know rift zone at 6,000 feet is hot but only need to hit open fractures too hot, too soft, too hard, too cold. ♦ What is the relationship between geology and hydrology with regard to Direct Use? ♦ To extract heat, you need water? ♦ Can the water be brackish? ♦ What is the role of water in Direct Use? Puna Geothermal Venture Operations ♦ Will hot water continue to be available in the future as PGV operations change and maybe increase the output of electricity? ♦ How will the neat be funneled (transferred)? The engineering of it? The steam is pretty damn hot! ♦ Is it mixed with other things to cool it down? Potential Applications of Direct Use No Post -It notes were generated for this topic. County Permitting and the Geothermal Asset & Royalty Funds No Post -It notes were generated for this topic. ` The Post -It notes were transcribed directly to the record as shown here. M �� r�/'� � � s� _ , � E m N a � `� � � o � 3 a o ,� 3 �� m m � u �\ C r 4 a g H a° 3 u � � '�� `f •' W j �_ � ��= ��- :n _. _ .._ - -._ ._ _... �'� G 4 p9 Y ATTACHMENT GEOTHERMAL DIRECT USE MEETING EVALUATION RESULTS April 21, 2005 — Leilani Estates Community Center Please use these ratings: 1- Needs improvement 2 -Adequate 3 -Good 4 -Excellent Please explain any ratings of "1" and provide your recommendations for improvement: • No info was given on this that I heard/understood. What other kinds of information should have been provided? (No comments) Any suggestions/comments? • Plenty public meetings • Excellent Format. • More community participation. 11 1 2 3 4 Description of the Geothermal Direct Use 1 6 3 Grant's purpose and objectives Information on Geothermal Direct Use and its _ 2 6 2 applications Information on the Geology and Hydrology of 2 5 3 this area Information on the potable water resources of _ 5 3 2 This area Information on geothermal direct use 2 4 3 potentials with Puna Geothermal Venture PGV Information on County permitting as it relates 2 3 4 1 to geothermal activit Information about the Geothermal Asset and 1 2 4 2 Royalty Funds Were our questions answered? 2 5 3 How was the facilitation of the meetin ? _ 1 5 4 Please rate these statements: True False Need more information I understand what Geothermal Direct Use is. 10 1 1 understand what the Working Group will be 9 2 doing. I know who to call if I have questions or 9 2 concerns regarding the Geothermal Direct Use Ray Carr Project. I understand what the Geothermal Direct Use 9 2 Project will be doin2 over the next two years. I want to be kept informed of the project's10 1 progress and conclusions. Please explain any ratings of "1" and provide your recommendations for improvement: • No info was given on this that I heard/understood. What other kinds of information should have been provided? (No comments) Any suggestions/comments? • Plenty public meetings • Excellent Format. • More community participation. 11 Attachment 6 Report of Meeting with Agricultural Community Attachment 6: Report of Meeting with Agricultural Community GEOTHERMAL DIRECT USE AGRICULTURE/BUSINESS GROUPS COMMUNITY MEETING 8/16/05 Cooperative Extension Conference Room Attendees: Dr. Arnold Hara, Gene Tao, Guy Toyama, Bob De Neve, Leimana Pelton, Jimmy Fang, Marco Chen, Dr. Marcel Tsang, Dr. Jim Szyper, Dwight Sato, Bob Kerns, Mark Bornheimer, Kelvin Sewaki, Myra Ikeda, David Wright, Dr. Ruth Iwata Commodity Groups Represented: potted orchids, cut flowers, agriculture, forestry, bamboo, tea, vegetables, foliage Working Group Members Present: Andrea Gill, Margarita Hopkins, Barry Mizuno, Steve McPeek, Priscilla Thompson Speaker: Dr. John Lund Summary: A community meeting was held for ag and business specific commodity groups on August 16`h, 2005 at the Cooperative Extension Conference Room. Dr. John Lund, Director of the Geo -Heat Center of the Oregon Institute of Technology gave a Power Point Presentation that was specifically tapered for this interest group. The interest was high as was demonstrated by the questions posed by participants. Questions: 1. How do we use the technology? Who will take the lead? What are the next steps? • A feasibility study will examine a few specific possibilities. • The Geothermal Direct Use Working Group will field questions and requests to determine needs. 2. What is the status of the state facility? • It is leased to NELHA. There are a couple of structures on the property that are being used as storage. • The facility would require an substantial investment to get it into working order. 3. Is it possible to utilize small scale devices that are inexpensive? • $2,000-$3,000 per installed Kilowatt • The most feasible use if Geothermal Direct Use, e.g. cold storage, ice plant for Pohoiki, lumber kiln, deinfestation, soil pasteurization, etc. 4. What is the lifespan of heat exchangers? • In Oregon the heat exchangers have lasted 45 years. • Heat exchangers cost $200-$300 and are enough to heat an average house or 3 small green houses. 5. What is the PH in shallow wells? How much chloride is present? • It varies from well to well and is constantly monitored. 6. Can GDU be used for greenhouses for orchids that require 80 degrees? • 100 degrees F is needed to maintain 80 degrees. • Ground source heat pumps could be used but you would need 5 feet of top soil to do this horizontally. • The heat required is available. 7. How far can heat be transported? • Iceland transports heat up to 38 miles away with a 20% loss. • Dr. John Lund suggests 5 miles as a practical standard. 8. Is land available around Puna Geothermal Venture for Geothermal Direct Use applications? • Most of the land belongs to the Lyman Estate. • There are some private land owners. Mr. White has given permission to PGV to test the well on his property. • The University of Hawaii Cooperative Extension has an agricultural experimentation station called Malama M that is currently unused and has a well. • The old site might be available through NELHA (tel. 329-7341) 9. Are monies available? • The US Farm Bill • There are monies available through the US Department of Agriculture, Rural Development contact : Timothy W. O'Connell Assistant to the State Director USDA/Rural Development 154 Waianuenue Ave., Room 303 Hilo, HI 96720 (808) 933-8313 (808) 933-8326 (F) 10. What is the timeline for experiments/use by entrepreneurs? It will take at least 1 year until the feasibility study is completed. However, the heat source is available through Puna Geothermal Venture. Companies can take initiative to contact PGV and landowners to explore possibilities of immediate use. 11. Contact information for Dr. John Lund Lundi@oit.edu http://geoheat.oit.edu DR. LUND'S GEOTHERMAL DIRECT USE PRESENTATION LIST OF AGRICULTURE PEOPLE Cooperative Extension Service Conf. Rm. A August 16, 2006 1:00-2:30 P.M. NAME 1. Arnold Hara - 2. Gene Tao 3. Guy Toyama 4. Bob De Neve 5. Leimana Pelton 6. Jimmy Fang 7. Marco Chen 8. Marcel Tsang 9. Jim Szyper 10. Dwight Sato 11. Bob Kerns 12. Mark Bornheimer 13. Myra Ikeda 14. Kelvin Sewaki 15. David Wright 16. Ruth Iwata Working Group & Guests 1. Andie Gill 2. Margarita Hopkins 3. Barry Mizuno 4. Steve McPeek 5. Dr. John Lund - Guest 6. Priscilla Thompson - Guest INTEREST Sterilization of potting media Potted orchids heating Spa Seed drying, foliage Bamboo drying Potted orchids heating Potted orchids heating Sterilization of potting media Aquaculture Tea and vegetable processing Aquaculture Aquaculture Forestry processing Cut flowers Food processing Orchids Attachment 7 Report of Meeting with Pahoa Community Attachment 7: Report of Meeting with Pahoa Community Public Informational Meeting on Geothermal Direct Use August 16, 2005 Attendees R. Winston Albright, Joe Dalrymple, Jon Olson, Ken Delimont, Dave Rogers, Paul Spielman (PGV), B. Wiebe (PGV), Randi Schneider (UHH), Don Thomas (UH), Steve McPeek (HCRC), Richard Dods (PGV), Mike Kaleikmi (PGV), Clyde Young (Department of Water Supply), Barry Mizuno (PGV), Barbara Lively (HCRC Facilitator), Margarita Hopkins (R&D), Alice Kawaha (Planning Department) Summary On August 16 and 17th, 3 community meetings were hosted by the Hawaii County Geothermal Direct Use Working Group. The first was a meeting of the Hawaii County Council's committee on Human Services and Economic Development. The second was meeting of agricultural and business groups interested in geothermal direct use applications. The third was a community meeting held at the Pahoa Community Center. (See Attachment 1: Community Meeting Agenda). The format for the Pahoa community meeting was similar to the first community meeting on April 21, 2005. After the presentation from Dr. John Lund, there was a break out session in which participants could visit 4 different information tables staffed by member of the Geothermal Direct Use Working Group with backgrounds in the following areas: ♦ Geology and Hydrology of Lower Puna — Dr. Don Thomas of the UHH center for the Study of Active Volcanoes and Clyde Young PE of the Hawaii County Department of Water Supply ♦ PGV Operations — Barry Mizuno, Owner's Representative of PGV ♦ Potential Applications of Direct Use — Andrea Gill of DBEDT SID ♦ County Permitting and the Geothermal Asset & Royalty funds — Alice Kawaha of Hawaii County Planning Department. The resource tables were set up and manned by 5:00 pm. In spite of extensive publicity and personal invitations, only 5 community members attended the meeting in addition to members of the working group and their staff. HCRC facilitator Barbara Lively opened the meeting. Margarita Hopkins gave an introductory speech and introduced Andrea Gill from the Department of Energy. Andrea gave a brief introduction from the perspective of the Department of Energy and then introduced Dr. Lund. Dr. John Lund, Director of the Geo -Heat Center of the Oregon Institute of Technology was the guest speaker for all three community meetings. He is the world's leading expert on geothermal direct use applications. After giving a Power Point presentation, Dr. Lund fielded questions from the audience. (See Attachment 2: Power Point Presentation). A discussion followed Dr. Lund's presentation. Different uses were discussed including: • Making and/or storing ice (at the old PGV facility) • Drying timber (eucalyptus currently takes 6 months to a year to dry) • Drying other types of wood and wood products • Drying; papayas, bananas, pineapple • Pumping heated water to Leilani (to heat water for residential use) • Spa's/Resorts Break Out Session Participants moved around the room to various information tables to ask questions and discuss suggestions and concerns with resource personnel. This process lasted for 45 minutes. The larger group reconvened and the resource personnel gave reports to the group of what was discussed at their tables. Debriefing: Resource Personnel Reports Alice Kawaha/Planning Department: Most of the discussion at Alice's table had to do with the (2) Geothermal Funds. Alice gave the following report to the group: Q: Geothermal asset funds (Royalty and Revolving Funds): Impacts/Requirements A: Brief description of the funds and what they are used for. Q: What kind of funding is available to address health effects/impacts? A: Brief description of the use of impact funds. Andrea Gill/Department of Energy: Most of the discussion at Andrea's table had to do with regulations and permitting processes. Andrea gave the following report to the group. Q: How long does it take to drill this type of well? A: The time it takes varies depending on what kind of drill and what type of rock. Other topics discussed: • Shallow wells permitted as water wells • Injection regulated by EPA • Air quality and noise, regulated by DOH • Green house/Bottom heating Concern: Need to address impacts of long term drilling and possible civil suits brought on by negative impacts of long term drilling. Response: Quieter technologies are available and should be used. Don Thomas/ the UHH center for the Study of Active Volcanoes on Geology in Lower Puna: There were some suggestions and discussion on possible uses and general questions about geology. Don gave the following report to the group. Q: How much square footage would you need for timber drying operation (start up)? A: 8'x 8'x 20' container would be needed to start on the 4 acre site. Q: Is an EIS required? A: HGVA has variance/existing permits already in place Q: Are there any other impacts, health or environmental? A: Don referred to an incident in Iceland as an example: Eruption of geothermal field caused a "rifting" effect in the ground at the power plant. No one was injured and this was a natural phenomenon. In this case the well was not affected. Q: Any concerns with "early venting" through the wells A: No, have heard of it but the probability is low. Suggestions: • Use the 4 acre site that has potable water to make/store ice for local fishermen • Make it a multiple use facility • Boat parking and storage • Greenhouse applications (Malama Ki Ag. Station) • Sterilization • Bottom heating Other topics discussed: • General hydrology • Heat temperatures • Drying lumber • Location/Space should be sealed to hold humidity and temperature (Matson containers might work. Designs available in Dr. Lund's handout) • Need slow drying process for lumber Different types of moisture in wood Different uses of wood Barry Mizuno/Puna Geothermal Venture Most of the discussion at Barry's table focused on Puna Geothermal Venture projects. Barry gave the following report to the group. Q: What is the status on PGV drilling? A: KS 10 re -drilling is completed and the well is back in operation. It has been restored to 30kw. KS 6 is complete. The rig is being moved to a new location. KS 13 will start September 1. It should be completed in October with production and injection running by the end of the year. Clyde Young/ Department of Water Supply on Water in Lower Puna Clyde had only one question at his table. Clyde gave the following report to the group: Q: Is there potable water in HGVA? Where do we get water for water loop? A: There is County water available that could be used for the water loop. Group Discussion on Implementation Possibilities To use the heat we need an exchanger. Dr. Lund talked a little about what a small exchanger might look like and what it would be capable of. The group learned about the process of pumping heated water from HGVA to facility and back for re-injection at HGVA. The need for more heat exchangers for a "secondary" loop was identified. Dr. Lund offered rough estimates of: $3,000.00 to $4,000.00 for a small exchanger $10,000.00 for piping This is part of what will be examined in the feasibility study. A brief explanation of EIS requirements for private individuals was given: • EIS not always required • Use of Federal funds will require an EIS • EA will determine the need for an EIS Concern: Is the County going to be on the same page with the State as far as regulations and permits? Suggestions for Consultant The Geothermal Working Group Members thought it would be a good opportunity to discuss things the consultant should be looking for as part of the feasibility study. The group came up with the following suggestions for the consultant to research/answer: • Lava I Zone — Implications, regulations, prohibitions • Insurance/Mortgageability — Is there any thing available, any other models available anywhere else? • Roads/Access — Any prohibitions related to funding • Health impacts — positive and negative • Economic impacts — positive and negative • Effects on property values • Construction impacts Dr. Lund's power point presentation is available on hard copy or on his web site. You can also send an email request to him for more information and for copies of his publications. Contact information for Dr. John Lund: lundi@oit.edu, http://geoheat.oit.edu LIST OF ATTENDEES PAHOA COMMUNITY MEETING Pahoa Neighborhood Center August 16, 2005 6:00 P.M. Community -at -Large 1. Winston Albright 2. Joe Dalrymple 3. Ken Delimont 4. John Olson 5. Dave Rogers Private Business 1. Paul Spielman - PGV 2. B. Wiebe - PGV 3. Richard Dods - PGV 4. Mike Kaleikini - PGV University of Hawaii -Hilo 1. Randi Schneider Working Group I. Don Thomas 2. Barry Mizuno 3, Alice Kawaha 4, Margarita Hopkins 5. Steve McPeek Resource Staff for the Working Group 1. Barbara Lively -Facilitator 2. Clyde Young Attachment 8 Dr. Lund's Presentations Attachment 8: Power Point Presentations by Dr. John Lund 1. Presentation to the County of Hawaii County Council 2. Presentation to the Agricultural Community 3. Presentation to the Pahoa Community 4. Presentation to the Hilo Bay Rotary Club Agri -Business Applications of Geothermal Energy John W. Lund Director Geo -Heat Center Oregon Institute of Technology Klamath Falls, OR USA INTRODUCTION • Many applications over a wide range of temperatures: - Greenhouse heating/cooling - Aquaculture pond and raceway heating - Milk and soil pasteurization - Ag -dehydration (fish, grain, fruit, vegetables) - Timber drying - Refrigeration - Chemical extraction (salt, boric acid, silica) Uses of —Geothermal Heat I a �• Geothermal Greenhouse Heating IFA Greenhouses - Klamath Falls - 4 acres 1 Geothermal Greenhouse Heating • Geothermally heated greenhouses - Have been in place since 1970 - 43 applications in the 10 western states in the US - Utilization factor of 0.25 - Approx. 100 MWt installed capacity - Approx. 725 billion Btu/yr utilization (180,000 bl9 of ori equwaienttyp - Many installations in over 30 countries Greenhouse Heating Systems • Chapter 15 — Greenhouses - from the Geothermal Direct Use Engineenna and Design Guidebook • Covers greenhouse construction, heating requirements, and greenhouse heating systems. • Heating systems covered are finned pipe, standard unit heaters, low temperature unit heaters, fan coil units, soil heating and bare tube. Geothermal Greenhouse Heating • One of the most common uses of geothermal resources • Use off the shelf equipment - simple • Most greenhouse heating systems are adaptable to geothermal • Growth can be optimized in a controlled environment • Can add CO2 from geothermal waters Geothermal Aquaculture Pond and Raceway Heating X �`��•p n\IIIII fir• I n.\\\•• • r11 •..II i1''... � \\N �Ne Geothermal Aquaculture Pond and Raceway Heating • Geothermal aquaculture projects - Been m place since 1970 - 49 applications in the 12 western states in the US - Utilization factor of 0.69 - Approx. 140 Ml installed capacity - Approximately 2,850 billion Btu/yr utilization • (710.000 not of Oil equivalent) - Many installations in 17 countries Geothermal Greenhouse Information Package • Introduction • Section 1 — Crop Market Prices • Section 2 — Greenhouse Operating Costs • Section 3 — Crop Culture Information • Section 4 — Greenhouse Heating Systems • Section 5 — Greenhouse Heating Equipment Selection Spreadsheet • Section 6 — Vendor Information • Section 7 — Other Information Services Temperature requirement and growth periods for selected aquaculture species T.4-1,11 Or,im Gnaw P -A 5Lo IAF) Gtt1v'111 °FL 10 Mu411 ij, Ov'tm 321,97 761,,78 ?4 L�F9an 32 u, 88 12 n75 ?0 Pm—d5Mnip K-- Qm' 77"187 6m8ty, RK r2m16 71 81 6to8 FeeaM1meiv Re T., 75 i"90 81 io 87 6 in 12 Cmfisb 3' 015 821"87 6 &1, 321097 73 10 86 12n.:4 TJxpi. 47 io106 72 io86 — Cnp 10 ioIW 68m90 — Tmm 32 89 h3 61,,8 5dlow F—h 33 m 86 71 V W SmpdBm. 1,, 86 61 io 66 6108 Geothermal Aquaculture Pond and Raceway Heating • One of the most common uses of geothermal resources • Use off the shelf equipment - simple • A number of freshwater or marine organisms can be raised - Including Tilapia, catfish, Malaysian prawns, tropicals, alligators and eels • Enhanced production rates can be optimized in a controlled environment • Geothermal water chemistry may be compatible 3 AT'- r � y� Pond and Raceway Heat Loss Calculations • Chapter 16 Aquaculture — From the Geothermal Direct Use Eno neenna and Design Guidebook • The maximum pond area that can be developed is restricted by the maximum heat available from the resource • Heat losses to take into consideration are evaporation, convection, radiation and conduction • Some ways to reduce heat losses are discussed such as surface covers, pond enclosures and thermal mass Aquaculture Information Package • Introduction • Section 1 — Market and Price Information • Section 2 — Water Quality Issues in Aquaculture • Section 3— Culture Information • Section 4 — Pond and Raceway Heat Loss Calculations • Section 5 - Aquaculture Bibliography Aquaculture Information Package • Section 6 - Aquaculture Glossary • Section 7 - State/Regional/University/ Extension Aquaculture Offices • Section 8 - State Aquaculture Permit Requirements 9 FISH DRYING- ICELAND • Drying of cod heads - 12,000 tonnes/yr • Primary drying - rack or conveyor -belt cabinet - 6 I1bs/h2 @ 64 to 77°F - 24- 40 hrs - moisture content reduced from 82 to 55% • Secondary drying - in containers - 72 to 79�F - 3 days - moisture content reduced from 55 to 15% • Exported to Asia and Africa as a protein source ' P Av oNW 5 Nm, �� j 3 AErytlede wN® • v � 8 PeNeb wM lmyf i Rack drying cabinet for primary fish drying in Iceland MILK PASTEURIZATION 1 • Medo-Bel Creamery in Klamath Falls, Oregon used geothermal heat in milk pasteurization for about 50 years • 764 -ft deep well @ 189°F @ 100 gpm • Used a 3 -section plate heat exchanger • Minimum temperature needed: 172°F for 15 seconds in short term pasteurizer Continuous r. conveyor r. dryerfor _ :a - primary o drying of -'-' cod heads. o-= R I I C Secondary air drying unit - 35 to 70 ft containers 5 MILK PASTEURIZATION 2 • Plate heat exchanger - 3 sections'. • 1. Preheats incoming milk at 37°F by outgoing (pasteurized) milk to 160°F • 2. Pasteurizes milk with geothermal water (in at 1890F and out at 171 °F) • 3. Finally, cools hot milk by preheating incoming cold milk and is then further cooled with chilled water back to 37°F. MILK PASTEURIZATION 3 • Milk processed at rate of 13 gpm • Total of 500,000 lbs processed/month • Also used to batch pasteurize ice cream • And, to heat 30,000 ft3 building • Cost: - 5 kW pump at $210/month - Pipe corrosion (800 mg/L - sodium sulfate - H20) • Savings: $1,000/month • 0.3 MWt and 1.0 billion Btu/yr (0.3 GWh) • No longer operating AGRICULTURAL DRYING 1 • Two large geothermal onion and garlic dehydrators are located in NW Nevada • These units can process 10,000 -14,000 lbs of wet onions/hr - drying them from 80% to 5°6 moisture (output = 1,500 to 1,8001bs/hr) • 0.15 therms/Ib dry product used = 500 million Btu/day or 76 billion Btu/yr (22 GWh) (150 days period) • Product used in soups, baked goods, salt, & seasoning as powders to slices AGRICULTURAL DRYING 2 • Single -line, continuous -belt dryer use - 12.5 ft. wide - 190 to 212 ft. long - 3 to 4 sections (A to D) - 205 to 165°F - Processing 4.5 to 7.2 tons/hr of wet onions - Using 86,500 W/minof air - 40 million Btu/hr - Onions 2 in. to Eft. deep - i desiccation unit required in final stage r !000� AGRICULTURAL DRYING 1 • Two large geothermal onion and garlic dehydrators are located in NW Nevada • These units can process 10,000 -14,000 lbs of wet onions/hr - drying them from 80% to 5°6 moisture (output = 1,500 to 1,8001bs/hr) • 0.15 therms/Ib dry product used = 500 million Btu/day or 76 billion Btu/yr (22 GWh) (150 days period) • Product used in soups, baked goods, salt, & seasoning as powders to slices AGRICULTURAL DRYING 2 • Single -line, continuous -belt dryer use - 12.5 ft. wide - 190 to 212 ft. long - 3 to 4 sections (A to D) - 205 to 165°F - Processing 4.5 to 7.2 tons/hr of wet onions - Using 86,500 W/minof air - 40 million Btu/hr - Onions 2 in. to Eft. deep - i desiccation unit required in final stage r AGRICULTURAL DRYING 3 • Brady's Hot Spring plant—first in U.S. - 270OF geothermal fluid - Only has 3 stages (A thru c) - 6 -months operation season - 23 tons of wet onions are processed during season 190 -ft long dryer by 12.5 ft. wide Uses 190 to 120-F air in various stages - Has also processed celery and carrots to extend season - Product trucked from S. California to S. Oregon (300 to 600 miles) AGRICULTURAL DRYING 4 • Empire Foods plant - constructed 1994 • Capacity - 34 tons/day onions; 38.6 tons/day garlic • 800 to 1,200 gpm of geothermal fluid ® 285°F • Cold storage warehouse allows year-round operation - 20° line being considered • Geothermal energy also used for four ORMAT 1.5- MWe binary units - net output 3.6 Ml • 30-F 4T across heat exchanger - spent fluid being considered for 1 MWe power plant for facility use Batch Grain Drying Rice Dryer - cross flow SMALL FRUIT DRIER • Designed for Los Azufres, Mexico • Design (for pears, prunes, peaches): - Building 12.0 It. x 4.5 N. x 10.5 ft. high - Two trucks with 30 trays each - Each tray 3 ft. x 3 ft. x 2 in. high - Each tray will carry 33 lbs of wet fruit - Approx. one tan of fruit/cycle - Fruit dried from 80% to 20% moisture in 24 hr Y - Details of the Los -- - Azufres geothermal - fruit dryer End view of cabinet Trays ..- _--- _�vrr Fruit drier in Mexico SMALL FRUIT DRIER 2 • Geothermal design: - Required air speed: 800 to 1,000 ft./min = 8,500 to 10,600 ft3/min, in 50% of x -section - Air drying temperature 140 to 165OF - Heat exchanger: 36 x 36 in. - 2 rows of 8 finned tubes - Geothermal flow: <210°F - Majority of air recycled - 1.5 hp fan @ 24 in. diameter SMALL FRUIT DRIER 3 • Estimated cost: - Building: US$2,000 - Trucks & trays US$ 500 - Heat exchanger LIS$ 800 -Fan unit US$1,700 - Controls & piping US 1 000 - TOTAL US$6,000 �JL4 i� N 1. Mt. Amiata. Italv ------------- -15 MWe - 363•F ,n M1 Y •54 acres houses ( •187•F-2000t/hr 7= X=' ..=. s -Flowers/plants -- '� -- -.- - •Feed/vegetables •650 employees KILN TIMBER DRYING 2 • Moisture in wood cells (cavities) and cell walls - Cells - majority lost first - no change in size - Walls - shrinkage of wall fibers - warping • Kiln drying process - Evaporation rate must be carefully controlled to prevent stresses - Drying rate varies with wood type - Drying rate decreases with thicker sizes (time increases) 1382F geo. 0 lbsih ttyr vied Tomato drying - Greece 14 KILN TIMBER DRYING • Two basic purposes of drying timber - Set the sap - Prevent warping • Sap sets at 135 to 140OF • Warping is prevented by establishing uniform moisture content throughout the thickness of the wood • I1 left exposed to the sun (air drying) - Exterior loses moisture faster than the intoner - Sets up stresses - causes warping KILN TIMBER DRYING 3 • Kiln drying process - Usually a batch process of 300 BF/batch - Finned tube or bare pipe heat exchangers - High velocity reversible fans for air circulation - Insulated building - Lumber stacked and separated by 1-2 in, wood strips (sticks) - stacks'. 12 fthigh x 6 ft. wide x 12 ft. long - weighted on top - Exhaust fans - draw out moist air - Rate slow enough to prevent warping - Time 24 hours to several weeks/batch - Often must remoistunze the surface at the end to reduce stress in the outer dryer surface 0 ENERGY CONSUMED Lumber Enerav Use • Ponderosa pine 4 x 4 (BtuRb of H20) (Btu/dry BF) Douglas Fir 2,000-3,000 1,560-2,340 Sr Yellow Pine 1,600-2,200 4,600-6,300 Red Oak 3,000+ 7,850+ DRYING SCHEDULES Dry bulb Wet bulb Time Final % • Ponderosa pine 4 x 4 160-F 130°F 21 hrs 5.80/, • Ponderosa pine 6 x 4 160°F 140°F 24 hrs 7.90%, 165°F 140°F 12 hrs 6.7% 170°F 140°F 24 hrs 5.7% 180°F 160°F 24 hrs 7.6% 180°F 172°F 20 hrs 12.2% • Ponderosa pine 12 x 4 - 22 days in 9 steps from 115 to 180°F GEOTHERMAL KILN OPS. • 1.5 to 3 x energy to evaporate moisture from wood as it does from pure water • Entering water temperature (geothermal) must be 20 to 40°F above temperature required in kiln • Only 10 to 15% of heat used in geo. water • Thus, discharge water can be cascaded for heating office buildings, greenhouses • Since,175 to 1950F geothermal supply water will be wasted at 155 to 175°F. • Using geothermal steam - non -condensable gas can be a problem when steam condenses at HEX surface 10 Kawerau, NZ q - Lumber drying kiln with reversible fans - O computer controlled and monitored 10 FLETCHER CHALLENGE FOREST — KAWERAU, NZ • Steam at 145 psi and 355-F inlet produces 300-F in kiln • 235 to 300 BF Radiata Pine/batch on 3 rail trucks - 2 x 4 wood • Moist. reduced from 150 to 10% in 20 hrs. • 2 hour cool -down period and then reconditioned for 6 to 8 hours at 195 to 212-F (10 to 20% moist.) • Before geothermal - 160-F drying for 4 days • Kiln dried lumber in NZ: US$ 50 to 70/BF ORADEA, ROMANIA • Furniture Manufacturing - 14,700 BF/yr of oak -440 BF in 3 bins - 8 to 16 gpm of 212-F water - 120OF drying temperature -2 weeks to 1 month per batch - Italian made dryer Refrigeration Lithium bromide system (most common — uses water as the refrigerant) - Supple. ch,lled wamrtor space and process cooling - above the freezing point - The nigher temperature, the more effrcrent (can use gaoNeor l fluids below 200°F -however, _ >240-F better for 100% etlmiency) Ammonia absorption used for refrigeration below freezing normally large capacity and require geothermal temperatures above 250°F Fletcher Challenge Forest Operation — Kawerau, NZ (A, { Lumber drying — Oradea, Romania fi Food Processing 100"C Apanmem U f Building y oAL A, Al + Retngeraaon Greenhouse p Plant � r N Fish Farm �U F Power Plant 2opC j fi Cost of Energy a t0 ____ m d 8 w`m 6 Z 4 Z In 2 .... - U 0 0.1 0.15 0.2 0.25 0.3 0.4 System Load Factor Thank you SUMMARY • Industrial use dominated by large facilities (onion dehydration, heap leaching, zinc processing) • Small industrial uses include: laundries, mushroom growing, mineral water processing, and an enterprise park in Hawaii (experimental work) • Higher temperature agri-business applications included vegetable, fruit and timber drying/dehydration, refrigeration • Lower temperature water can be used for greenhouse and aquaculture pondlraceway heating, and for soil sterilization/pasteurization 12 DIRECT HEAT UTILIZATION OF GEOTHERMAL ENERGY Presentation to the County Council of the County of Hawaii John W.Lund Director Geo -Heat Center Oregon institute of Technology Klamath Falls, Oregon, USA Uses of "i Geothermal Heat 1 i• � Z, Ff, - - Advantages of Direct -Use of Geothermal Energy • Can be used on a small scale ("mom and pop operation") - Individual home -Single greenhouse -Single aquaculture pond • Can also be large scale operation - District heating -Food and mineral ore drying What is Direct -Use: Heating and Cooling • Swimming, bathing and balneology • Space heating and cooling - Including district energy systems • Agriculture applications - Greenhouse heating • Aquaculture applications - Fish pond and raceway heating • Industrial processes - Including food and grain drying • Geothermal heat pumps Advantages of Direct -Use of Geothermal Energy Can use low- to intermediate temperature resources (<300°F) "e4ue"°'"s Reservov mp�ewre These resources are more wide- spread Direct heal use (no conversion - high efficiency) or d Use conventional water -well e drilling egwpment ; - ' Use conventional, off -the -shell equipment Minimum start -up -time -,_°.-....._. Equipment Often necessary to isolate geothermal fluid to prevent corrosion or scaling Care taken to prevent oxygen from entering system Must take into account the chemistry of the water, which may require a heat exchanger to separate the geothermal from the secondary water. Bx+ro Vnn � wwe n.a For many direct uses or geotnermal heathot water is pumped from lastly shallow, sources. The heat may be transferred to a 'won ng I uub,' which could be potable water or even air using a heat exchanger itn Wirer cases, such as apuacuture or spas. the geoIDemial water might be used bvectly, without a heat exchange) Swimming, Bathing and Balneology • Main Users (past and present) - Romans - Chinese - Ottomans (Turks) - Japanese - Central Europeans - American Indians (Mexico and USA regions) - Pacific Islanders (Hawaii, Tahiti, Fiji, etc.) - Spa, Belgium ...,tb•,. t. } w r Iceland and New Zealand IiIIIIIIIiiiial Wall United -s States locations�ipn\\\, i- t t Space Conditioning • Individual well for a building or several buildings using pumps or downhole heat exchangers connected to room convectors • Klamath Falls, Oregon (also snow melting) • Reno, Nevada • Rotorua, New Zealand • Taupo, New Zealand • Several Places in Turkey "i Agribusiness Applications Should consider the chemistry of the water - effect on animals & plants Rotorua, New Zealand - Soil/mulch sterilization Wairakei, New Zealand - Malaysian prawns,' - alfalfa oryrng (pellets) .� ' V Klamath Falls. OR t - Tree seedlings, tropical fish, - potted flowers & vegelable starts District Heating — Examples • 18 locations in the US - total 100 MWt • Reykjavik, Iceland -started 1930 • 190,000 people (99.9% of city) • 190° to 2WF water- supplied at 175°F • Adequate to -15°F- oil fired booster station • 62 wells providing 830 MWt • Large storage tanks for peaking Agribusiness Applications • Greenhouse heating (flowers, vegetables, tree seedlings) - 5 to 35% savings in heating costs • Animal pen heating and cleaning • Soil warming • Crop irrigation • Mushroom raising • Soil and mulch sterilization • Aquaculture - 50% increase in growth rate - Catfish, shrimp, tilapia, eels, tropical fish PR 138W geo 30 lbs/h 4Vyr p dried �) Tomato drying - Greece Mail �I. Temperature IF Sii fib c1-1 T— E------ - --'.. -- - °� --- co Temperature °C jmlllfj +w. US and New Zealand d Greenhouse heating systems 'l =F-�\ Ng . Aquaculture — Example Wairakei, New Zealand -freshwater prawns • 19 ponds - 0.5 to 0.9 acre - 3 to 4 ft. deep • 75-F - effluent from power plant • Produces 30 tons/yr • Harvested after 9 months at 14 to 18 tails/Ib • Sold for USS17/Ib wholesale and USS27/Ib retail • 90% sold to restaurant on the property • 25,000 tourists/yr • Future expansion to 100 acres and will produce 400 tons/yr - income or USS 8.7 million Refrigeration Lithium brormde system irl cc mmon - uses water as the refrigerant) - Supplies cntlled water for space and pmceFS cooling - above the veenng point - Tie higher temperatureme mrs efficient (can use geothermal 11 us below 200°F -however, >240-F batter for 100 eHicency) Ammonia absorption Used for id refrigeration below freezing normally large capacity and recwre geothermal temperatures above 250°F 4 Heat Pumps (1) • Ground source or geothermal heat pumps (GSHP or GHP) - uses 40 to 90°F ground temperature • 50 to 100% more efficient than air source, since uses constant temperature resource • Ground coupled - Horizontal In trencnes 3 - 10 ft deep - Vertical in 4 -Inch diameter 150 - 200 itdeep drillholes - Others • Ground water - Using well or lake water Heat Pumps (2) • Used for both heating and cooling • Heated capacity of 3 kW to 1,500 kW - 1 ton to 500 tons (of cooling capacity) • Solar vs geothermal heating?7?? • 27 countries - US the leader • '500.000 units installed in US • COP of 4 Industrial Applications • Oldest: Larderello, Italy - boric acid and borate compounds processed since 1790 • New Zealand. pulp, paper and wood processing at Kawerau - sulfur mining/processing • Iceland: diatomaceous earth drying - Myvatn - Fish drying and salt production • USA: vegetable dehydration (onion) - Nevada gold extraction (heap leaching) - Nevada S � I � Food Prrcass n� IWC Aper�ment BwlOmg Reingeralron ureennwse + U Planl 9. 200 0 Fran ratm C.sC.,ing to max:mlies 1 of mn gaomarmm ereryy 3 S �._ Geothermal — Direct -Use l w — Possibilities _ HAWAII (2) • Possible uses of geothermal on Hawaii - aquaculture pond heating - shade house bottom -heating - crop/timber drying - refrigeration heat pumps for cooling of resorts, public and commercial buildings - spa and resort pools Temoerawre'F az v< -- e - a Temperature °C HAWAII (1) • Little need for space heating and cooling except for large buildings (cooling) • High temperature resource on Big Island Low -to -moderate tempresource on Maui • Possible resource on Molokai and Oahu HAWAII (3) • Aquaculture pond heating - constant B0°F temperature needed for optimum growth of many species - 100"F minimum temperature needed - A 10cF temperature variation = 700o growth rate • Greenhouse heating - Cooling needed during day, heating at night - 120°1` minimum needed for heating. 200'F for cooling - Soil stenlizaaorvpasteunzation, 140`F HAWAII (4) • Crop/timber drying - Mainly food dehydration (pineapples and coffee) and hard wood drying (koa, etc.) - Need 200°F and above • Refrigeration - Cooling - need 200eF and above - Refrigeration - need 250°F and above - For cold storage (fish, pineapples, eta) I. HAWAII (5) • Geothermal (ground -source) heat pumps - Anywhere in Hawaii - Need 40OF to 90cF ground or water temperature - Design for cooling load of larger buildings - Saving 25 to 7546 of electricity load • Spa and resort pools - 70-F to 110`F mineral water desired - Rest and relaxation - health and well-being - Tourist attraction DIRECT HEAT UTILIZATION OF GEOTHERMAL ENERGY Presentation to the Pahoa Community John W.Lund Director Geo -Heat Center Oregon Institute of Technology Klamath Falls, Oregon, USA Uses of .i Geothermal Heat - A w _ � Advantages of Direct -Use of Geothermal Energy • Can be used on a small scale ("mom and pop operation") - Individual home - Single greenhouse -Single aquaculture pond • Can also be large scale operation - District heating - Food and mineral ore drying What is Direct -Use: Heating and Cooling • Swimming, bathing and balneology • Space heating and cooling - Including district energy systems • Agriculture applications - Greenhouse heating • Aquaculture applications - Fish pond and raceway heating • Industrial processes -- Including food and grain drying • Geothermal heat pumps Advantages of Direct -Use of Geothermal Energy • Can use low- to intermediate temperature resources f<30(TF) • These resources are more wide- spread • Orect heat use (no conversion - high efficiency) • Use conventional water -well dnlhng equipment • Use conventional, off-the-shelf equipment • Mn,mum start -up -time Equipment ',egeercy VSa `ese,vmT 'emoe� Often necessary to isolate geothermal fluid to prevent corrosion or scaling Care taken to prevent oxygen from entering system Must take into account the chemistry of the water, which may require a heat exchanger to separate the geothermal from the secondary water. ow wiim G uO Jnn Fnl4tlurY• ' � K� ro it �- GvxwmOWd j I—, WeMyRuq For many pvect uses of geothermal heat, hot water is pumped from tariv shallow sources The heat may be transferred to a "worring fluid " which could be potable water or even air, using a heat exchanger. (In other cases, such as aquaculture or spas. the geothermal water might be used directly, without a heat eononger) Swimming, Bathing and Balneology Main Users (past and present) - Romans - Chinese - Ottomans (Turks) - Japanese - Central Europeans - Amencan Indians (Mexico and USA regions) - Pacific Islanders (Hawaii, Tahiti, Fiji, etc.) - Spa. Belgium ,1fi,�s.� • r Iceland and New Zealand A �Y United States - locations \` Space Conditioning • Individual well for a building or several buildings using pumps or downhole heat exchangers connected to room convectors • Klamath Falls, Oregon (also snow melting) • Reno,Nevada • Rotorua, New Zealand • Taupo, New Zealand • Several Places in Turkey Agribusiness Applications • Should consider the chemistry of the water - effect on animals & plants • Rotorua, New Zealand - Soil/mulch sterilization • Wairakei, New Zealand - Malaysian prawns, - alfalfa drying (pellets) - y _ L� • Klamath Falls, OR k - Tree seedlings, tropical fish, - potted flowers 8 vegetable starts District Heating - Examples • 18 locations in the US - total 100 MWt • Reykjavik, Iceland - started 1930 • 190,000 people (99.9% of city) • 190° to 260�1` water -supplied at 175°F • Adequate to -150E- oil fired booster station • 62 wells providing 830 MWt • Large storage tanks for peaking Agribusiness Applications • Greenhouse heating (flowers, vegetables, tree seedlings) - 5 to 359„ savings in heating costs • Animal pen heating and cleaning • Soil warming • Crop irrigation • Mushroom raising • Soil and mulch sterilization • Aquaculture - 50'x. increase in growth rate - Catfish, shrimp, reps, eels, tropical fish QWF geo. 3016s/h 4t/y( P dried nr33rrtir..:GtNr1o•_.+Yid� Tomato drying - Greece I It Temperature °F LfTn'r _— _ TCAnATo-- _. — WCUMBER i s P. TtsMidestUrs-C r. 32 — - �o r Temperature °F BP � Chc can T-- ...m�— he ---� Temperature nC Greenhouse heating systems Aquaculture - Example Wairakei, New Zealand - freshwater prawns • 19 ponds - 0.5 to 0.9 acre - 3 to 4 ft. deep • 75-F- effluent from power plant • Produces 30 tons/yr • Harvested after 9 months at 14 to 18 tails/Ib • Sold for US$171b wholesale and USS27/Ib retail • 90% sold to restaurant on the property • 25,000 tourists/yr • Future expansion to 100 acres and will produce 400 tons/yr - Income of US$ 6.7 million Refrigeration • Lithium bromide system (most common - uses water as the refrigerant) — Supplies chilled water tot space and process cooling — dews the freezing point — The higher temperature. P.e more .ffio.nt (par use geothermal Mums below 200°1`— however, v240°F better for too'. erli seri • Ammonia absorption used for im refrigeration below freezing normally large capacity and require geothermal temperatures above 250,F 4 Heat Pumps (1) • Ground source or geothermal heat pumps (GSHP or GHP) - uses 40 to 90°F ground temperature • 50 to 100% more efficient than air source, since uses constant temperature resource • Ground coupled - Horizontal in trenches 3 - 10 ft deep - Vertical in 4- inch diameter 150 -200 ft. deep drillholes - others • Groundwater - Using well or lake water Heat Pumps (2) • Used for both heating and cooling • Heated capacity of 3 kW to 1,500 kW - 1 ton to 500 tons (of cooling capacity) • Solar vs geothermal heating???? • 27 countries - US the leader • '500,000 units installed in US • COP of 4 f I - I JI Pm Industrial Applications • Oldest: Larderello, Italy - boric acid and borate compounds processed since 1790 • New Zealand: pulp, paper and wood processing at Kawerau - sulfur mining/processing • Iceland: diatomaceous earth drying - Myvatn - Fish drying and salt production • USA: vegetable dehydration (onion) - Nevada gold extraction (heap leaching) - Nevada 1 =oW Prxessina ��' Auanmerl eummnq aemga�arbr. �reennw e � Purl b 1�V U Fish Farm POwE Pldnl � coasao�ne to ma.w"� ese l me oeaine.m� erre�¢v U. 'Geothermal -- Direct -Use Possibilities _ HAWAII (2) Possible uses of geothermal on Hawaii - aquaculture pond heating - shade house bottom -heating . crop/timber drying - refrigeration - heat pumps for cooling of resorts, public and commercial buildings . spa and resort pools n -- Temperature °F Gors .Cnc - sem— --- - p4 Temperature "C HAWAII (1) • Little need for space heating and cooling except for large buildings (cooling) • High temperature resource on Big Island • Low -to -moderate temp. resource on Maui Possible resource on Molokai and Oahu HAWAII (3) • Aquaculture pond heating - constant 80°F temperature needed for optimum growth of many species - 100oF minimum temperature needed - A 10oF temperature variation = 709, growth rate • Greenhouse heating - Cooling needed during day, heating at night - 120-F minimum needed for heating, 200-F for cooling - Soil sterilization/pasteurization, 1407 HAWAII (4) • Crop/timber drying -Mainly food dehydration (pineapples and coffee) and hard wood drying (koa, etc.) - Need 200-F and above • Refrigeration -Cooling - need 200-F and above - Refrigeration - need 250eF and above - For cold storage (fish, pineapples, etc.) 3 HAWAII (5) • Geothermal (ground -source) heat pumps - Anywhere in Hawaii - Need 40°F to 90`1` ground or water temperature - Design for cooling load of larger buildings - Saving 25 to 75% of electricity load • Spa and resort pools - 70°F to 110°F mineral water desired - Rest and relaxation - health and well-being - Tourist attraction DIRECT HEAT UTILIZATION OF GEOTHERMAL ENERGY Presentation to the Hilo Bay Rotary Club John W.Lund Director Geo -Heat Center Oregon Institute of Technology Klamath Falls, Oregon, USA http: //geoheat.o it.ed u Advantages of Direct -Use of Geothermal Energy • Can use low- to intermediate temperature resources (<3000F)- commonly around 200OF • These resources are more wide -spread - on most of the Hawaiian islands • Direct heat use (no conversion - high efficiency) • Use conventional water -well drilling equipment • Use conventional, oft -the -shelf equipment • Minimum start -up -time fo o��rn O wmI.•n„w For many direct uses of geothermal heat hot water is pumped horn fairly shallow sources The heat hay be transferred to a 'morning fluid- which could be portable water or even airusing a heat ..bhanger in nicer cases, such as aquaculture or spas the geothermal water might ne used directly, without a moat exchanger) What is Direct -Use: Heating and Cooling with Hot Water • Swimming, bathing and balneology • Space heating and cooling — Including district energy systems • Agriculture applications — Greenhouse and soil heating • Aquaculture applications - Fish pond and raceway heating • Industrial processes - Including food and grain drying • Geothermal heat pumps 1 400117, 2001 WT I,OY, 4 C� IW'P i1RCi OT, 20V Temperature use for direct use applications 1 Fn�a Prae::��g Rpmgsrafan ® Pam / 1 00 PpwBr Planf ca.madRq i.) msslml:e use sf he g,lM,al energy HAWAII (2) nnanmem awlmng F, Farm • Aquaculture pond heating - constant 80°F temperature needed for optimum growth of many species - 100°f' minimum temperature reeded - A 10'F temperature variation = 70% growth rate • Greenhouse heating - Cooling needed during day, heating at night - 120°F minimum needed for heating, 200-F lot cooling HAWAII (4) • Geothermal (ground -source) heat pumps - Anywhere in Hawaii - Need 40rF to Wi` ground or water temperature - Design for cooling load of larger buildings - Saving 25 to 75°n of electricity load • Spa and resort pools - 70'17 to 110-F mineral water dewed - Rest and relaxation- health and well-being HAWAII (1) • Possible uses of geothermal on Hawaii - aquaculture pond heating - greenhouse heating - crop/timber drying - refrigeration - heal pumps for cooling of resorts, public and commercial buildings spa and resort pools HAWAII (3) • Crop/timber drying - Mainly food dehydration (pineapples and coffee) and hard wood drying (koa) - Need 200-F and above • Refrigeration - Cooling - need 200°F and above - Refrigeration - need 250°F and above - For cold storage (fish) 1 Bay Watch Rotary Club of Hilo Bad —.august 17, 2005 (Editor. Richard Cmtire: please direct comments to rerou e is hubhle. uhh. hairmi.edu, The Bat II atch is on-line at htto:l/hubble.uhh.hawaii.edu/Rotam/index.html Wednesday's guest speaker was Dr. John Lund (left), Director of the Geo -Heat Center at the Oreton Institute of TechnoloL,r, and President of the International (reothermal Association. John was invited to the Big Island to share his knowledge of direct geothermal energy for non -electric purposes, such as heating spas or greenhouses, drying wet lumber, or dehydrating produce Joining hint in this photo are Anita Forbes (center), and Andrea Gill (right). Photo by Nadia Schomer. Karolyn Lundkvist led the August 17" meeting, Susie Blackmon was Ms. Mike, Richard Crowe was our greeter, Jane Gibson led us in the Pledge to the Flag, and Michele Carvalho -ave us inspiration. Guests — Mike Lutcher from the Rotary Club of Hilo; Lanny Neel from the Rotary Club of South Hilo; Dianne and Don Morgado from the Rotary Club of Volcano; Sara Cunningham, Andie Gill, and John Lund. M iHALO to Michele Carvalho for a llaii Kai "Thoughtful Expressions" gift basket, won by Mary Begier, and a Amid m r Volcano Art poster, won by Joel LaPinta. A nno1111cente11tS — Karolyn Lundkvist announced that only 12 of 56 members have not paid their Annual Dues. Please note that the August 24 meeting will be held in the SaniLia Ho'omalimah Room. Karolyn also informed us that there will be a Membership Orientation meeting on Wednesday, September 28. Details will follow later. Patty Sue Salvador announced that our Hilo Hai Roicin Chih Star fart will be held on Friday, September 2. We will be provided with dinner, stargazing, and a special talk on the culture and science of Mauna Kea by Kahalelaukoa Ell. The cost for the dinner is $0 a person. The event is open to all the East Hawaii Komar clubs- Richard Crowe announced that the next kitil-, /,alaii ma �,le I'm -A work day is scheduled for Saturday, August 27, from 8:00-11:00 a.m. Bring your weedwhackers! Dianne Morgado announced that the Rwarr Club a iolcmio is holding a l),n lo!,Ni'r hilidratNei on Sunday, September 4, from 12 noon until 4 p m. at Wailoa State Park- There will be live music provided by the 11 L'1401 Irn< fund, a silent auction, and all the food, wine and beer cou can cat and drink for S50 a person. Happy Dollars SSSS — Jane Gibson, Don Morgado, Jay Curlee, Mary Begier, Gerry Hollins, Bob Lamson, Doug Patterson, Richard Crowe. Bay Watch 1 Club .-1 nniversaries - Richard Crowe (08/14), 3 years. 11 eddhto . l nniversaries -Pat Gorman (08/11), 26 years to t11ary Lee; Darryl Turner (08/14). FLN FINES to Tim Young, Rich Wlosinski, Gerry Hollins, Barbara Radford, Yu Yok Pearring, Gary Young, Trevor Rodrigues. SPECT 4 L RECOGA ITION to Doug Patterson (O uiet Rotarian) and Glen Calvert (Spirit of RotaaT), whose photos appeared in the Sunday, August 14 issue of the Hans ut 7 I rihime-Hei ald.. Guest Speaker - Dr. John Lund, Geo -Heat Center. Oregon Institute of Technology Julie Hugo introduced John, Professor Emeritus of the Ore,,on h7V7711ur W 7rclmo(o<L Civil Engineering Department and co-founder of the Geri -Hear CLV7tC1- in 1975. John has worked in the field of direct non -electric use of geothermal energy for 28 Nears. He was invited to the Big Island to share this kno%\ ledge tr ith representatives from the CounrN. State, and (i7i,el m u; Hamm i that are initiating a studs of ways that direct geothermal encrg� could benefit businesses and the communax in lower Puna. without using more fossil fuels- Among the enterprises that might benefit from the direct use of geothermal heat on the Big Island are spas and resort pools. lumber-drvinc kilns, dehydrators for papa}a or other produce. facilities to pasteurize growing media for greenhouses, and aquaculture ponds. For example. a 10°F temperature variation can affect aquaculture production by 30% Two major resources that could support direct use businesses are ( l) .caste heat from Pwiu (IL oo?, ma, f L"MOL power plant, and (2) hot (-200-400°F) groundwater less than 1000 feet under the East Rift Zone of Kilauea. Con%ennonal drilling equipment can be used to access the hot ground source. Heat is transferred from the source to a "working fluid using heat exchangers. Industrial applications such as food processing would need a working fluid of -300°F. greenhouses and spas would need -200°F. and aquaculture ponds or fish farms would need -I20°F Cascading techniques, as heat is lost or used along the wa}. can be utilized to maximize use of geothermal energy. John estimates that the use of geothermal heat pumps can save 25-75°0 of a txpical electricity load. He mentioned that 991-o of the population have access to direct geothermal encrD in Reykjavik. Iceland, where fossil fuels are used onh for cars and fishing boats. For more information about direct geothermal use_ see httn:!!geoheat.oit.edu. .11ontllll• Calendar of Events - Aug. 24 - Rotary Meeting - Speaker: Gary Fujihara, Institute for Astronomy (I/A), "Deep Impact" Aug. 27 - Kuhio Kalaniana'ole (Centennial) Park Cleanup, 8 a.m.-11 a.m., on site near Bay Clinic. Aug. 31 - Rotary Meeting - Speaker: Peter Chariot, appearing in the role of Thomas A. Jaggar Sept. 2 - Hale Pohaku Dinner and Star Party - 3:15-10:15 p.m., meet in front of 1 :4 at 3:00 p.m. Sept. 7- Rotary Meeting - Speaker: Jeff Melrose, Katnehanneha School, "Balanced Outcomes" •' ordti :o live lir - The nice thing ahout meditation is that it makes doing nothing quite respectable. - Paul Dean (via Barry Taniguchi) Foto• -Noy Test - Hike Gleason This past Thursday (August 18), East Hawaii Rotarians assembled at the Cniversih of Hawaii at Hilo to recruit students for a CHH Rotaract Club. Eleven students signed up. At left, Don Hughes, Dianne Mo_ rgado. Barbara Radford, and Karolyn Lundkvist prepare for the students. At right, Rebecca and Michele Carvalho pass out materials. Also present were Albert Jgle..1ack Lockwood, David Uhlmann. Rick �t Castberg. Nate Chang. Marcia Sakai. and photographer Richard Crowe. HAW: iI t1SA �'""'� Bay Watch 2 Attachment 9 public Outreach Materials Attachment 9: Public Outreach Materials 1. Handout: About the Direct Heat Utilization of Geothermal Energy Study 2. Article: Direct Heat Utilization of Geothermal Resources by Dr. I Lund 3. Article: Options and Questions for Direct Use in Puna, Hawaii by A. Gill 4. Article: Prospective Direct Use Enterprises in Kapoho, Hawaii by A. Gill 5. News Release 6. Public Flyer 7. Letter to Community Organizations Harry Kim Mayor County of Hawaii DEPARTMENT OF RESEARCH AND DEVELOPMENT 25 .Aupum Street, Room 219 • Hilo, Hawaii 96720-4252 (808) 961-8366 • Fax (808) 935-1205 E-mail: chresdevCinterpac.net About the Direct Heat Utilization of Geothermal Energy Study Jane H. Testa DIreC1or The County of Hawaii, with support from the State and funds from the U.S. Department of Energy, is beginning a study of ways that direct heat from geothermal energy could benefit businesses and the community in lower Puna. Here are some questions and answers about the study. Qt: What is "direct utilization of geothermal energy"? "Direct utilization" (or "direct use") means using geothermal heat for non -electric purposes. Worldwide, common direct uses of geothermal energy include aquaculture, drying agricultural products, heating buildings, heating greenhouses, and spas. Q2: What will the study include? 1) Sharing information on direct uses of geothermal heat with residents of lower Puna (Pahoa, Kapoho, Pohoiki, Leilani Estates, etc.) and discussing their thoughts about direct use opportunities; 2) Conducting a feasibility study to identify costs and benefits of potential direct use business opportunities and to determine if it's a good idea to locate several of the enterprises together in an "incubator" park so that small businesses can test and implement ideas inexpensively; and 3) Learning if support for geothermal direct use is something for which the community thinks the County's existing Geothermal Royalty Fund and Geothermal Asset Fund should be used. Q3: What kinds of businesses will be studied? The study will identify a variety of businesses that could make use of geothermal heat. Among the suggestions thus far are: greenhouse bottom heating, lumber drying, pasteurizing growing media for greenhouses, providing cold storage for fishing and other enterprises, aquaculture, spas, and drying fruits, vegetables, or fish. Other ideas that support current agricultural activities in Puna will be sought from residents and businesses in the area. Q4: What hot water resources will be studied? There are two main resources that could support direct use businesses. One is the waste heat from Puna Geothermal Venture's power plant. The other resource is the hot groundwater that underlies the lower East Rift Zone of Kilauea. This groundwater is naturally heated—between body temperature and boiling—at relatively shallow depths, less than 1,000 feet. It could be pumped to the surface using normal water wells. Q5: How will information be shared? The County of Hawaii established a working group to facilitate communication with the community. There will also be public information sessions. 06: Will there be any construction, drilling, etc. as part of this project? No. The project is a feasibility study and does not include any implementation. Q7: How long will the study run? The feasibility study should be completed in early 2007. Discussion and communication with the public will continue throughout the study period. Hawaii County is an Equal Opportunity Employer An Example of Direct Utilization of Geothermal Heat User Application' I Water uid For many direct uses of geothermal heat, hot water is pumped from fairly shallow sources. The heat may be transferred to a "working fluid," which could be potable water or even air, using a heat exchanger. (In other cases, such as aquaculture or spas, the geothermal water might be used directly, without a heat exchanger.) *The "user application" could be a dehydration unit for fruit, vegetables or fish, such as the one illustrated below. Heat would be delivered at point #5, the "heater," which is a heat exchanger. In this illustration, hot geothermal fluid or heated potable water would enter the heat exchanger, and the fan would blow air across it, heating the air, which is then used to dry the produce. The arrows show the path of air flow. 0 1. Air inlet 4. Fans p ® 2. Air outlet 5. Heater j 3. Adjustable valves � 6 Pallets with trays 3 Ciftf�� i Graph¢ concepu courtesy of Elie L 5 Department of Ene-, and the Oregon losomwe of Technology's .lea -I leaz Center Pp by Jtate of Hawan Department if Business. Economm De,elopotent. and To�asm a cooperauon ,snh the C o,mty of Hawan Department of Research and Deaempmen:, Jarua, 2005 *' Uses of IW C 1r �Geothermal Heat Flash & Dry Steam Seothermal Power Plants Typical direct (non -electric) uses of geothermal energy at different Va temperatures Cent & Refr ger- Aggregate sem' �� ^^ ation& Drnng i r, o Icemaking Sugar ;rr ,,, Binary Evaporation S Pthermal gtano, onryn ovreBiofuels V Ca Drying Lumber lic Plants Production Dry ° Drying Fabric Q Building Dyeing Heating & Cooling Blanching, Fruit & & Cooking �'✓ Vegetable Water & Drn9 n Concrete Food Heating Pasteur- ` —C7 o Block ization Curing Processing Green- +� G housing Mushroom -I & Soil 4 Q Biogas - Culture > Sterilization t t rProduction Snow Aqua 9�^�J culture`1 1 Bathing &De-icing 1 1)I Geo- Soil t thermal Warming Heat OGmchmnil Eduonm orfice iaLLS - www geoCkrmalmnnwg mom •Oe+q� w+neo. wvam...�e�a�..rr J Illustrates ex,sting, past and proposed uses worldwide. 'Cool water .s added as needed to make the temperature just right for the fish. OPTIONS AND QUESTIONS FOR DIRECT USE IN PUNA, HAWAII Andrea T. Gill Dept. of Business, Economic Development and Tourism Strategic Industries Division State of Hawaii KEYWORDS Direct use, Hawaii, low-temperature resources, Puna Geothermal Venture, regulations, USA ABSTRACT Several options for the development of geothermal direct use enterprises in Puna, Hawaii have been identified, including: 1) tapping waste heat from the Puna Geothermal Venture (PGV) power plant; 2) extracting heat from unused, existing exploratory wells; and 3) drilling new shallow wells to the top of the aquifer. Shallow (less than 305 meters deep) wells drilled in Puna during exploration for both potable water and geothermal resources indicate a low-temperature resource near the top of the aquifer, at or near sea level. However, PGV is currently injecting waste Fluids at 150° C; waste heat from this source could be made available for direct utilization, obviating the need for new production or injection wells. Several scenarios for developing heat for direct uses are explored, along with their regulatory ramifications. Unanswered questions relating to the application of State and County laws and regulations are noted. I.NTRODUCTION Hawaii, unlike most other Western states, has less experience with the direct use of geothermal heat than with geothermal electricity. Apart from the continuing traditional uses of swimming and soaking in warm springs along the coast and enjoying natural steam vents as saunas, the only documented direct uses of geothermal heat were small experiments in the late 1980s known as the Community Geothermal Technology Program (Beck, 1989). In contrast, Hawaii's experience in geothermal exploration for electricity generation dates back at least to the 1960s. Geothermal exploration by several different companies and landowners eventually resulted in the successful establishment of a 30 - MW power plant by Puna Geothermal Venture (PGV), which became fully operational in 1993. During the last four and a half decades, a number of wells have been drilled in and near the Kilauea East Rift Zone (KERZ) for various purposes (see Figure 1). Their temperatures, depths, and water chemistry provide insight into the geology of the rift zone and the nature of geothermal resources in the Puna District of the Island of Hawaii. Gill This information is proving valuable as interest in non -electric uses of geothermal energy increases. Figure. 1: Wells in Lower Puna The Hawaii County Geothermal Direct Use Working Group drafted this map depicting wells in the Puna District near the current geothermal development area. These wells, both deep and shallow, were drilled for a variety of purposes and provide insight into the resources that could support direct use. SHALLOW EXPLORATORY WELLS Shallow wells for both potable water and geothermal power production have been drilled at several dozen sites in the lower Puna area from near the town of Pahoa to the easternmost point of the island, Cape Kumukahi. In this context, "shallow" generally means depths of less than 305 meters (1,000 ft), usually to the top of the aquifer. This water may or may not be hot, and may or may not be potable. The chemistry of fluids tapped by the shallow wells is quite different from those tapped by the deep wells drilled for geothermal production. The Hawaiian Islands' highly fractured subsurface basalts allow seawater to penetrate deep within the interior structure of the volcanic masses. Meteoric water percolates through the permeable soil and fractured rock until it encounters seawater; this less -dense fresh water then forms a Ghyben-Herzberg lens, floating on top of the seawater. In the coastal areas, the fresh water aquifer is fairly thin, encountered near or at sea level. This basal water is encountered both north and south of the KERZ. Within the KERZ, however, fresh water is considered both dike -confined and dike -controlled (Iovenitti, 1990). The dike system within the rift provides both a source of heat and a leaky boundary which controls the hydrology of the geothermal system; dikes and possibly mineral deposition from seawater help exclude saline fluids from deeper portions of the rift and partially isolate the groundwater within the rift from the larger groundwater flow system (Thomas, 1985 and Scholl, 1993). Magma sources heat both the meteoric water and the seawater that has infiltrated the island mass; in places, the heated water rises to the top of the aquifer. Water chemistry data show mixing of seawater and meteoric water in a large thermal system south of the KERZ (Janik, 1994). Shallow wells near the coast, which tap the top of the aquifer, may thus encounter a buoyant layer of warmed, somewhat saline water. If these wells were drilled slightly deeper, they would probably penetrate through the warmed layer, encountering reduced temperatures. Although the KERZ structure is complex, with many fractures and 2 Gill intrusive structures which can either enhance or limit fluid circulation, in general wells deeper than 1,000 meters are required if a high-temperature resource is being sought. In 1961, a major landowner in the Puna District of the Island of Hawaii drilled four shallow exploratory geothermal wells. Dubbed Puna Thermal THl through TH4, these wells were drilled to depths ranging from 66 meters to 210 meters and encountered fluid temperatures ranging from 43° to 95° C near the top of the aquifer. These temperatures are too low for viable electricity production, and deeper wells were not considered at that time. These wells remain unutilized. A number of shallow wells have also been drilled by both public and private entities to locate potable water resources. Current potable water wells are located north and west of the geothermal production area, outside of the KERZ. With depths ranging from approximately 130 meters to 245 meters, these wells penetrate roughly 20 meters below mean sea level and produce potable water between 20° and 25° C. Other water exploration wells were drilled in Puna, some within the KERZ or just outside its approximate boundaries. With depths ranging from 14 to 102 meters, extending from three to 30 meters below mean sea level, these wells show evidence of seawater intrusion and are considered too saline for the municipal water supply. In addition, several wells' temperatures were elevated, with the warmest at 56° C. Most of these nonpotable water exploration wells are currently unused, though one serves as a backup water quality monitoring well for PGV's operations. DEEP GEOTHERMAL EXPLORATION AND PRODUCTION WELLS As the geothermal industry matured, deeper wells were drilled. Within the KERZ, the first successful deep geothermal well was the public HGP -A well that provided steam for a demonstration 3 -MW power plant and encouraged private exploration. HGP -A was completed in 1976 to a depth of 1,967 meters, achieving temperatures of 360° C. When private developers encountered a producible resource nearby with wells drilled in the 1980s, HGP -A's usefulness as a demonstration came to an end. The well was permanently sealed in 1989. Most of the 19 deep geothermal wells completed in the 1980s and `90s were drilled for geothermal exploration and production, although three were scientific observation holes used to gather information on the subsurface geology in the KERZ. Temperatures ranging from 220° C to over 350° C were recorded in the deep wells. Not all of these wells were producible, however, and many have been plugged. Most major productive zones lie 1,219 to 2,134 meters (4,000 to 7,000 ft) below the ground surface (GeothermEx, 1994). The depths of most of the deep wells range from approximately 1,400 meters to over 2,500 meters. Their mean depth below sea level is 1,829 meters, although two wells, KS7 and KS8, encountered pressurized, hot fluids at comparatively shallow depths (KS8 reached a depth of 1,060 meters, 868 meters below mean sea level). These two wells are among those that have been plugged. 3 Gill Two new wells are being drilled in mid -2005 by PGV. KS6 is intended to be a fourth production well for the power plant, and KS 13 is expected to serve as a fourth injection well. REGULATORY FRAMEWORK FOR DIRECT USE The State of Hawaii anticipated non -electric uses of geothermal heat when establishing statutes and regulations in the 1980s. State law relaxes some regulatory requirements if geothermal heat is to be used directly. For instance: Subzones: State land use laws specify appropriate uses in broad categories of land, including urban, rural, agricultural and conservation. In addition, special geothermal "subzones" were created. According to Hawaii Revised Statutes (HRS) Section 205-5.1, exploration and development of geothermal resources for electricity production can only occur in these four subzones, three of which are in the KERZ. Non- electric applications, however, are only limited to a geothermal subzone if the land is zoned for conservation purposes. Definition of a geothermal resource: State law (HRS Section 182-1) defines a "geothermal resource" as having temperatures above 150° F. Lower temperature fluids, then, are not regulated as geothermal resources, and users of lower temperature fluids need not obtain State geothermal exploration or well drilling permits. However, wells drilled to tap geothermal fluids of 150° F or less must still be permitted as water wells by the State Commission on Water Resources. The permitting process is outlined at the Commission's website (http:/thawaii.gov/dlnr/cwmi/). A permit is necessary even if the water is expected to be nonpotable (Nakano, pers. comm., 2005). In addition, the disposal of fluids is still governed by Federal Environmental Protection Agency (EPA) and State Department of Health rules on underground injection. Despite having reduced regulatory requirements at the State level, developers of geothermal direct use projects will be breaking new ground, both figuratively and literally, since no one has yet permitted a direct use operation in Hawaii. The exact application of State and County laws and regulations has yet to be exercised. Currently, the County of Hawaii issues a Geothermal Resource Permit for "geothermal development activities," including both research and commercial activities and meaning "exploration, development, or production of electrical energy from geothermal resources, or as otherwise defined in Hawaii Revised Statutes (HRS), Section 205-5.1." Since the language in the County's Rule 12, Geothermal Resource Permits, specifically refers to the production of electrical energy, and since the referenced HRS Section 205-5.1 relates to geothermal resource subzones and includes the exemptions for direct use applications mentioned above, it is not unreasonable to assume that County permitting will comport with State permitting. However, County Planning Department rd Gill staff opinion has not been rendered on the subject. Thus, potential County regulation of direct use development remains an unknown factor in developing non -electric uses of geothermal energy. DIRECT USE RESOURCE OPTIONS The County of Hawaii, supported by the State of Hawaii Department of Business, Economic Development and Tourism with funding from the U.S. Department of Energy, is investigating potential non -electric uses of geothermal heat in Puna. As part of this effort, a Working Group has been formed to solicit comments and suggestions from the community, and a feasibility study will be performed. The funding does not include any implementation, such as drilling, experimentation or construction (Gill, 2004). In discussions to date, several options for the development of geothermal direct use enterprises have been identified, including: 1) Tapping waste heat from Puna Geothermal Venture's power plant; 2) Extracting heat from unused, existing exploratory wells; and 3) Drilling new shallow wells to the top of the aquifer. These options, and some of the questions they raise, will be explored briefly. WASTE HEAT FROM PUNA GEOTHERMAL VENTURE (PGV) PGV currently injects 3,000 gpm of fluids at or above 148° C (300° F) after power production (Mizuno, pers. comm., 2005). The company is amenable to providing waste heat for non -electric purposes, as long as its power plant operations are not negatively affected and terms of its current lease and permit are adhered to. One critical permit requirement is that geothermal fluids produced by PGV must be injected by PGV within their lease area. This precludes export of the fluid itself beyond the lease boundaries. However, extracting heat via a heat exchanger is a technically viable option, and water—presumably from a potable public supply --thus heated could be piped beyond the boundaries of PGV's lease. The heat exchanger itself would be a critical component of such a system and must be suitable for the chemistry and temperatures of the geothermal fluid. The geothermal brine injected by PGV averages 127 mg/1 Si02 and 539 mg/1 H2S (GeothermEx, 1994). Maintenance of the heat exchanger in view of the potential for precipitation and deposition of dissolved solids will be essential. Although County regulators have not yet thoroughly considered the ramifications of such an export of heat from PGV, company officials believe that this activity would be allowed under its current permit. Assuming this is true, direct use applications would be spared the expensive, regulated activities of drilling new production and injection wells. A high temperature resource would be available without further exploration. Gill Waste fluids from PGV's operations are considerably hotter than those that have historically been tapped by shallow wells, allowing a broad range of non -electric uses. Further, PGV has indicated that the heat would be available at no cost (Mizuno, pers. comm., 2004). A third party, however, would need to invest in the infrastructure—a heat exchanger, pipes, and circulation pump, for instance—to extract the heat and transfer the hot water to the location where it would be used. The capital cost of this equipment will be estimated during the feasibility study phase of the State and County's direct use project. Another task of the feasibility study will be to identify a suitable location for direct use enterprises utilizing waste heat from PGV. The company prefers such activities to be sited outside of their 800 -acre lease (Mizuno, pers. comm., 2004). Adjoining properties are generally zoned for agricultural purposes, which would allow enterprises such as fruit dehydration and growing media pasteurization. One possible location is the four -acre Noii O Puna laboratory site adjacent to PGV's lease. Previously the location of the HGP -A well and power plant, this was also where the Community Geothermal Technology Program direct use experiments were performed. Should Noii O Puna be refurbished for geothermal direct use enterprises, its size may limit its desirability for some applications, such as extensive greenhousing. WARM WATER FROM UNUSED, EXISTING WELLS There are more than a dozen shallow wells in or near the KERZ, some of which indicate elevated temperatures. PGV's three monitoring wells, for instance, have temperatures ranging from 44° to 67° C. The highest temperature recorded in a shallow exploratory well is 95° C, in TH3, one of the wildcat wells drilled in 1961. Located on private agricultural land east of PGV's facility, its condition and suitability for use are unknown. One of the existing shallow wells, Malama Ki, is owned by the University of Hawaii (UH) and located on a UH agricultural experiment station south of PGV, approximately two miles inland from the eastern Puna coast. Although the maximum recorded temperature, 56° C, is fairly low for most purposes, the existence of the well has raised some interest among UH agriculturalists. Among the applications suggested are aquaculture and pre -export soil disinfestation of potted plants. The State of Hawaii Department of Land and Natural Resources (DLNR) drilled the Malama Ki well in 1962 in an effort to identify potable water supplies. Although the water is not potable, the well was used for monitoring through the mid-1990s and is presently considered a standby monitoring well for PGV. Water chemistry data have been published by the U.S. Geological Survey (USGS) (Janik, 1994), among others. The ground surface elevation at Malama Ki's wellhead is 83.5 meters and the well itself is 97.2 meters deep. Static water level is between 0.56 and 0.86 feet above mean sea 11 Gill level. The bottom 14.6 meters (48 ft) of the eight -inch casing is perforated (State of Hawaii, 1962). The pumping test rate was 480 gpm, and temperatures during the test ranged from 53° C (127.5° F) to 54.7°C (130.5°F). Malama M's chloride content ranged from 3,811 to 6,887 mg/l during monitoring by the USGS (Janik, 1994). The well, which was percussion drilled, is covered by a removable metal lid. The status of the casing at depth is unknown, though surface oxidation is evident in the exposed portion. Because it is located within the Malama Ki UH agricultural experiment station, the well, if utilized, must be used for agricultural purposes. The station itself has no utility power, public water systems, or telephone service. The 189 -acre Malama Ki station was previously used extensively for species trials and is still home to a wide variety of tropical fruit and nut trees, including cacao, macadamia, guava, sapodilla, mangosteen, avocado, mango, papaya and lychee. Presently, USGS scientists use the old administration building as a camping headquarters during their field research on bird species. Tapping the Malama Ki well for direct use poses a number of challenges. First, the condition of the well and casing are not known, nor the long-term sustainability of temperature levels if the well is produced. If the hot groundwater were to be pumped to the surface for direct use, a power supply for the pump would be needed. Power for a pump would either require a new utility line or an independent power system, such as one based on photovoltaics; both options are likely to be discouragingly expensive. Water brought to the surface will eventually need to be disposed of. Normally, the State of Hawaii Department of Health and the EPA require injection wells to protect the aquifer. Another option for withdrawing heat with reduced pumping costs is a downhole heat exchanger (DHE). The eight -inch diameter of the existing casing would allow the use of DHE. However, the casing is probably not undersized relative to the well wall; that is, there is probably not an annulus between the casing and the well wall which would promote the formation of a convective cell necessary for good DHE performance. One alternative might be the use of a convection promoter pipe (CPP). A CPP, usually perforated at the top and bottom and inserted into a cased well, creates a pathway that establishes one -cell thermal convection as long as reasonable permeability exists at the well bottom. The presence of a CPP with a DHE has improved the heat output of the DHE by 60% to 120% in laboratory experiments, and demonstrations at Taupo, New Zealand, have also been successful (Allis, 1980). It is possible that a 6 -inch diameter plastic pipe, into which a 2 -inch DHE is inserted, would be sufficient to withdraw useable heat (Culver, pers. comm., 2005). 7 Gill It should be noted that geothermal DHE systems are typically used for domestic water and space heating, not for agricultural applications, and their potential heat output is less than that of pumped wells. A DHE would need a source of water to circulate within the system, picking up heat from the well. Currently, there is no water supply in the Malama Ki station except for some large storage cisterns near the old office buildings. Further, the resource temperature encountered by the Malama M well is already fairly low, 56° C. This would be reduced further by losses at the heat exchanger, limiting the types of direct use applications that could be supported. Among the low-temperature uses that might still be viable are aquaculture and greenhouse bottom heating. On the positive side, however, a pump to circulate water through the DHE often requires only a fraction of a horsepower, an order of magnitude less than that needed to pump water out of the well. It may be feasible to supply this amount of electricity with photovoltaics. Furthermore, in some DHE applications, natural convection alone is sufficient to circulate the working fluid without a pump. A DHE would also make fluid disposal unnecessary, since no geothermal water would be brought to the surface. DRILLING NEW, DEDICATED SHALLOW WELLS FOR DIRECT USE The third option for developing geothermal direct uses in Puna is, of course, drilling new wells exclusively for non -electric purposes. Temperatures attained by existing shallow wells indicate that water hot enough for a variety of applications may be tapped at the top of the Puna aquifer; that is, at roughly sea level. The surface elevation near PGV's operations is around 183 meters (600 ft), and declines to zero to the east. The depth of a new well would be dictated primarily by the elevation of the wellhead. Costs for drilling, casing and testing exploratory water wells, 16-20 inches in diameter, currently range from $600 to $700 per foot. If the well is to be produced, the pump, motor, piping, fittings, buildings, etc. can add another $1,000 to $1,200 per foot (Young, pers. comm., 2005). Therefore, a new well in the general vicinity of PGV, where shallow wells such as TH3 and MW2 have encountered temperatures between 67° and 95° C (153° and 203° F), might cost $1,000,000. However, note that a well tapping temperatures above 150° F would be considered a geothermal well rather than a water well by State regulations; equipment such as for blowout prevention would increase costs. An injection well for the spent fluid would be an additional expense. As in any other geothermal operation, of course, there is no guarantee that sufficiently hot water would be encountered at shallow depths. Several miles north and east of PGV, two wells—Kapoho Airstrip and SOH2—were drilled within a few hundred feet of each other. The deep Scientific Observation Hole #2 (SOH2), which extended to a depth of 2,073 meters, attained temperatures of 350° C (Olson, 1993). However, the adjacent shallow exploratory water well, Kapoho Airstrip, is only 102 meters deep. The highest recorded temperature was only 38° C (Janik, 1994). d Gill A third well, TH4, which is east of SOH2 and the Kapoho Airstrip well, was only 88 meters deep and recorded temperatures of 43° C. Since the State DLNR's regulations have never been applied to direct use, there is some question as to how the temperature limitation of 150° F will be interpreted. Is it to be measured at the bottom of the hole? If the well is permitted as a water well, not a geothermal well, and unexpectedly encounters temperatures above 150° F, what procedures would need to be followed? Would the developer then need to apply for a Geothermal Exploration Permit and a Geothermal Well Drilling Permit? Would additional equipment, such as blowout prevention, then need to be acquired, unexpectedly increasing costs? Would the additional expenses and delays make direct uses economically unviable? These and the other unanswered questions listed above will be addressed as the County/State geothermal direct use project continues. ACKNOWLEDGEMENTS Thanks to the following people for their valuable discussions and review of this paper: Dr. Raymond Carr, energy coordinator with Hawaii County's Research and Development Department; Mr. Gene Culver, Associate Director (retired) of the Geo -Heat Center, Oregon Institute of Technology; Mr. Barry Mizuno, Owner's Representative for Puna Geothermal Venture; Dr. Donald Thomas, Director of the University of Hawaii - Hilo Center for the Study of Active Volcanoes; Ms. Priscilla Thompson, Energy Analyst with DBEDT's Strategic Industries Division; Ms. Nami Wong of the State of Hawaii DLNR Engineering Division; and Mr. Clyde Young, PE, of Hawaii County's Department of Water Supply. The creation of the map of wells in Puna would not have been possible without the professional expertise of Ms. Lisa Nahoopii, GIS analyst for Hawaii County's Data Systems Department. REFERENCES Allis, Richard G. and R. James, 1980. "A Natural Convection Promoter for Geothermal Wells" Geothermal Resources Council Transactions, v.4, p. 409-412. Beck, Andrea Gill, 1989. "Experiments in Direct Use at Noi `i O Puna." Geothermal Resources Council Transactions, v. 13, p. 3-9. Culver, Gene, Oregon Institute of Technology Geo -Heat Center. Personal communication; 4 May 2005. GeothermEx, Inc., 1994. Annual Report: Geothermal Resources Assessment. State of Hawaii Department of Business, Economic Development and Tourism. n Gill Gill, Andrea T., 2004. "Prospective Direct Use Enterprises in Kapoho, Hawaii." Geothermal Resources Council Transactions, v. 28, p. 85-89. Iovenitti, J.L., 1990. "Shallow Ground Water Mapping in the Lower East Rift Zone Kilauea Volcano, Hawaii." Geothermal Resources Council Transactions, v. 14, p. 699-703. Janik, Cathy J., M. Nathenson, and M.A. Scholl, 1994. Chemistry of spring and well waters on Kilauea Volcano, Hawaii, and vicinity. U.S. Department of the Interior, U.S. Geological Survey Open -File Report 94-586. Mizuno, Barry; Puna Geothermal Venture. Personal communication; 20 February 2004. Mizuno, Barry; Puna Geothermal Venture. Personal communication; 21 April 2005, Nakano, Dean; DLNR Commission on Water Resource Management. Personal communication; 16 March 2005. Olson, Harry J. and J. E. Deymonaz, 1993. "The Hawaiian Scientific Observation Hole (SOH) Program Costs and History of a Successful Slim Hole Drilling Program." Geothermal Resources Council Transactions, v. 17, p. 443-450. Scholl, M.A., C.J. Janik, S.E. Ingebritsen, J.P. Kauahikaua and F.A. Trusdell, 1993. "Preliminary Results from an Isotope Hydrology Study of the Kilauea Volcano Area, Hawaii." Geothermal Resources Council Transactions, v. 17, p. 187-194. State of Hawaii Department of Land and Natural Resources, Division of Water and Land Development, 1962. Circular C12: Summary of Drilling Logs and Pumping Test for Malama-Ki Well 9-9, Malama-Ki, Puna, Hawaii. Thomas, Donald M., 1985. "Characteristics of the Geothermal Resource Associated with The Volcanic Systems In Hawaii." Geothermal Resources Council Transactions, v. 9, Part II, p. 417-422. Young, Clyde; Hawaii County Department of Water Supply. Personal communication; 5 May 2005. 10 PROSPECTIVE DIRECT USE ENTERPRISES IN KAPOHO, HAWAII Andrea T. Gill Dept. of Business, Economic Development and Tourism, Strategic Industries Division State of Hawaii Keywords Aquaculture, Balneology, Dehydration, Direct Use, Economic Development, Greenhouses, Hawaii, Low -Temperature Resources, Pasteurization, Puna Geothermal Venture, Refrigeration, USA Abstract The Puna District of the island of Hawaii encompasses the only Known Geothermal Resource Area (KGRA) in the State of Hawaii. Its Kapoho region is also the location of the state's sole geothermal power plant, the 30 MW Puna Geothermal Venture (PGV) facility. Despite significant potential, there is negligible direct utilization of geothermal heat in Kapoho. Direct use development is primarily hampered by a lack of awareness regarding the availability of the resource and its benefits, and by the perceived cost of infrastructure. A regulatory framework for geothermal development has been established, although County regulations do not specifically address direct use. The resources potentially available to direct use enterprises in Puna include thermal groundwater from shallow wells and excess heat from PGV's operations. Water wells in the area with depths less than 230 meters (750 ft) have recorded temperatures ranging up to 89°C (193°F). PGV is supplied by several deep wells that have encountered fluids at temperatures up to 342°C (648°F). Hot brine from the separator, at approximately 204°C (400°F), could be tapped for direct use or additional power generation prior to reinjection. Economic activity in Kapoho is primarily based on agriculture. Direct use offers value- added opportunities for existing enterprises such as papaya farming, nursery operations and commercial fishing, and can also provide the basis for new businesses. Direct use opportunities are especially promising in Hawaii because of the exceptionally high costs of conventional energy supplies, and because they can improve profitability, add value to products, increase productivity and expand job opportunities in an environmentally benign manner. Narrative Although several areas with geothermal potential have been identified in the State of Hawaii, the Big Island of Hawaii is the only island where geothermal resources have been developed and where the community is actively engaged in geothermal issues. The island's Puna District encompasses the only Known Geothermal Resource Area (KGRA) in the State and is the location of the 30 -MW Puna Geothermal Venture (PGV) power plant. Gill There is significant potential for geothermal direct use development in the Kapoho region of Puna that is primarily hampered by a lack of awareness regarding the availability of the resource and its benefits to business ventures, as well as the perceived high capital cost of wells and other infrastructure. Direct use development in Puna could encourage activities elsewhere in Hawaii and other Pacific island jurisdictions such as the Commonwealth of the Northern Mariana Islands and American Samoa. Puna Geothermal Venture, Hawaii's sole geothermal power plant, has been operating since 1993. However, despite the prevalence of shallow thermal groundwater in the area and the willingness of PGV to provide hot fluid for non -electric uses from its system, the only current direct uses of the abundant geothermal resource are a small aquaculture operation and some steam vents and warm springs on public and private properties used for recreational and/or therapeutic purposes. Direct Use Working Group To raise awareness of and interest in non -electric uses of geothermal energy, the State of Hawaii Department of Business, Economic Development, and Tourism and the County of Hawaii, along with PGV, the University of Hawaii Center for the Study of Active Volcanoes (CSAV), and the Oregon Institute of Technology Geo -Heat Center, are establishing a Hawaii County Geothermal Direct Use Working Group with support from the U.S. Department of Energy's GeoPowering the West program. The Working Group will have broad representation including: residents, businesses and landowners in the community; PGV; agricultural commodity groups and extension agents; government representatives; and geothermal experts. The professionally facilitated Working Group will focus on disseminating information on direct use applications as well as collecting and transmitting community comments to the County. A proactive, collaborative approach to gathering input, with both informal networking and formal meetings, will be applied. This collegial method will increase the acceptability of direct use development to the community by reflecting its needs and preferences. Public, non-technical educational workshops, to which all interested parties are invited, will be convened to supplement the Working Group's information dissemination and public input functions. Topics such as geothermal technology, the economics of geothermal development, access and permitting will also be addressed. The County can benefit from the Working Group's input regarding the existing Geothermal Asset Fund and Royalty Fund requirements. Although both are intended to benefit the community adjacent to geothermal development and mitigate its impacts, there are strict guidelines for determining eligibility and release of monies. Each fund currently holds approximately $1.2 million. PGV pays $50,000 annually to the Asset Fund, and a portion of its annual revenues goes to the Royalty Fund (Mizuno, pers. comm., 2004). To date, only $6,500 of the Asset Fund has been granted for a resident's claim and the maintenance of a community group's emissions monitoring equipment. 2 Gill The intent of the Geothermal Relocation Program is to relocate certain owner -occupants residing near the geothermal power plant, if they so request. It is funded by proceeds from the geothermal royalties received from the State Department of Land and Natural Resources, the sale of properties purchased, and rental fees from any of the properties purchased under this program. The fund was debited approximately $209,000 for net expenses after the purchase and resale of four homes under this program between 1999 and 2004 (Kawaha, pers. comm., 2004). Available Geothermal Resources in Kapoho PGV has acquired permits allowing eventual expansion to 60 MW, and can add up to seven new wells under existing permitting. Many direct use applications are quite modest, implying that PGV's excess thermal resource could support a fairly extensive range of activities. For instance, depending on the size of the operation and the local climate, geothermally heated greenhouses in other states require from 0.6 MWt to 1.5 MWt per acre, and aquaculture operations can require 2 to 4 MWt per acre (Lund, pers. comm., 2004). Hawaii's subtropical climate would substantially reduce the thermal demands for similar enterprises of equivalent scale. In 2001, PGV leased Noi `i O Puna (NOP), the former Puna Research Center, from the State's Natural Energy Laboratory of Hawaii Authority (Boyd et al, 2002). NOP is a 1.6 -hectare (4 ac) facility adjacent to the approximately 324 hectares (800 ac) PGV has leased for its operations. The research center has been inactive since the HGP -A well was closed in 1989 and is currently used by PGV for storage. NOP is a potential geothermal direct use incubator park site. PGV is willing to provide heat to NOP for direct utilization, as long as it does not negatively affect power plant operations (Mizuno, pers. colmn., 2004). PGV's power plant is supplied by several deep wells having total depths greater than 1,372 meters (4,500 ft) (GeothermEx, 2000). These wells have encountered fluids at temperatures ranging between 335°C and 342°C (635°F – 648°F). Other deep wells in the vicinity of the PGV lease have encountered temperatures as high as 373°C (703°F). Fluids from these deep wells are now utilized by PGV's power plant. After electricity generation, the fluids—a mixture of condensate and brine from the separator—are reinjected at temperatures ranging between 149°C and 204°C (300°F - 400°F). Brine from the separator is at the higher end of that range, and could be tapped for additional uses prior to mixing and reinjection. The Kapoho region overlies the Kilauea East Rift Zone (KERZ). The State Department of Land and Natural Resources has designated four Geothermal Resource Subzones statewide. There are three Subzones in KERZ—the Kapoho, Kamaili, and Kilauea Middle East Rift Subzones—as well as the Haleakala Southwest Rift Subzone on Maui. The Kapoho Subzone lies mainly within an area that is estimated to have a 95% probability of a high-temperature resource (GeothermEx, 2000). Water wells in the area having depths less than 229 meters (750 ft) have recorded temperatures ranging up to 89.4°C (192.9°F) as well as elevated mineral content indicative of limited ocean water intrusion (Geothem-Ex, 1999). There are approximately one dozen known wells and springs in the Kapoho area with measured 3 Gill groundwater temperatures of at least 26°C (78.8°F), and ranging up to 55°C (131°F) (Moreau, 1980). It is possible that a direct use enterprise park, or an individual enterprise, could utilize hot groundwater from independent wells, not part of PGV's operations. Kapoho's Current Economic Activities and Direct Use Opportunities Economic activity in Kapoho is primarily agricultural. Direct use offers value-added opportunities for existing enterprises, and can also provide the basis for new businesses. Direct use opportunities are especially promising in Hawaii because of the exceptionally high costs of conventional energy supplies such as electricity and propane gas. The community discussions are expected to reflect a broad spectrum of entrepreneurial interests, such as those below. 1) Fruit dehydration Geothermal heat can be used for fruit dehydration or other processing, providing value- added options which can improve the farmers' profitability. Of the roughly 810 agricultural hectares (2,000 ac) in Kapoho, up to 70% is cultivated, mostly in papaya (Hopkins, pers. comm., 2004). The average production of salable fruit in 2001 was 30,000 kg per hectare (26,500 lb/ac) (Data Book 2003), resulting in an estimated 14.4 million kilograms (31.8 million lb) of marketable fresh papaya for the region that year. However, an equivalent amount of papaya is not salable as fresh fruit due to reasons such as small size or irregular shape (Hopkins, pers. comm., 2004). Most of these culls are currently discarded. The dehydration of cull fruit would provide a value-added option. Dried papaya slices and chunks are marketable as snack foods, while dehydrated papaya powder can be sold as a nutritional supplement and digestive aid due to the enzyme, papain, which it contains. An earlier study estimated that the capital cost of a papaya drying facility would be $200,000 for a plant with a 1,000 pound per day capacity (Okahara/Shigeoka, 1982). A larger capacity plant, processing between one and two million pounds of papaya annually for a national market, was reported to be only marginally economic (Chen, 1982). However, market conditions today are substantially different, and the distribution network for these products has become more diffuse through e-commerce. A local fruit producers' cooperative may find that it can transform unmarketable culls into a significant revenue stream. Besides papaya, other crops are grown in Kapoho, mostly the products of small, diversified farming operations. They include organic tropical fruits such as avocado and rambutan, as well as banana and macadamia nuts. Some of these crops could be dried. 2) Cold storage, refrigeration, and ice making Puna District is known for its flowers and ornamental plants. A sizeable vanda orchid farm is located approximately eight kilometers (5 mi) east of PGV, and some small businesses in the area are devoted to flower packing and sales. Cool storage is necessary to preserve the freshness of flowers prior to shipping. 11 Gill Pohoiki Bay, eight km (5 mi) to the southeast of PGV, is the County's third largest commercial fishing port. In 2002, 149,371 kg (329,302 lb) of fish were landed at Pohoiki, valued at $667,932 (Data Book 2003). However, the nearest source of ice is in Hilo, over 42 km (26 mi) away. Ice, which is necessary to keep both bait and the catch fresh, can melt as much as 20% during transport from the Hilo ice plant (Hirai & Assoc., 1983). A nearby icehouse and cold storage facility would improve the quality of the fish and the productivity of the fishermen. 3) Aquaculture The only current business utilizing warm groundwater in Kapoho for direct use is an aquaculture enterprise, Tropical Ponds Hawaii, which raises tropical ornamental fish such as swordtails, platys, guppies, endlers and gourami. They operate 32 ponds on roughly 0.8 hectares (2 ac), and plan to add another 40 ponds in the near future. The water source is 43°C (110°F) groundwater from a 213 -meter (700 ft) shallow well adjacent to PGV's power plant. Between 35,000 and 70,000 gallons per week are utilized. Although most of the water is cooled to ambient temperatures—which range from the low 70s to low 80s Fahrenheit— before entering the ponds, water at approximately 38°C (100°F) is added to breeding ponds and hatchery tanks to stimulate breeding. The slightly saline water is also conducive to fish health by promoting the growth of protective "slime coats" and controlling algae in the ponds (Kern, pers. comm., 2004). Even in Hawaii's mild climate, aquaculture pond temperatures can fluctuate approximately 5.5°C (10°F) seasonally. Using geothermal fluids to stabilize the temperature within 2-3°F of optimum can significantly increase the growth rates of many species of fish. 4) Greenhouse bottom heating Raising nursery products, including foliage, potted flowering plants, bedding plants, and landscape plants, is a major activity in the Puna District. In 2002, the value of these products in the County—excluding cut flowers, orchids and lei flowers—exceeded $23.8 million (Data Book 2003). From 1986 to 1989, a small demonstration greenhouse, using a geothermal bottom heating system, operated at the NOP research center. The growing medium was kept at 29°C to 32°C (85°F — 90°F) at the heated greenhouse, while at a nearby control facility it was approximately 21 °C (700F). The nursery operator identified over a dozen species of ornamental palms that grew significantly better in heated media (Beck, 1989). Not only did the seedlings reach transplant size more quickly—sometimes several months before non -heated controls—but germination rates also improved. 5) Processing other agricultural products Geothermal heat can dry lumber. Having a limited number of operating lumber kilns handicaps the State's forest industry, which is centered in Hawaii County. Existing kilns' energy costs are discouragingly high. Many businesses choose to air dry their lumber, which may take months or even years, or export wood for kiln drying out of state. Providing a cost -competitive local kiln would offer opportunities for adding value to the timber crop. 9 Gill Geothermal heat can also be used to dry macadamia nuts, a major crop in Puna District. Currently, the Mauna Loa Macadamia Nut processing plant in Keaau, approximately 24 km (15 mi) west of PGV, utilizes its waste biomass for drying, roasting and other process heat. A smaller -scale dryer at a direct use enterprise park could allow small operators to independently process their crops for market. Heat could also be used to process animal and fish feed for local animal husbandry and aquaculture operations. A 1980 study investigated the feasibility of a cattle feed mill that would process dehydrated feed from sugarcane leaves for export (Moreau, 1980). Other products, such as cacao beans, coffee, kukui nuts, fish or meat could also utilize a dehydration facility. 6) Pasteurization or sterilization of growing media Hawaii's extensive nursery industry raises foliage, flowers, ornamentals and other plants in shade houses and greenhouses. If the plants are intended for export, special steps must be taken to avoid the transport of soil organisms such as nematodes. Plants must be grown on raised benches in sterile or pasteurized media, essentially all of which is currently imported. Mushroom culture, a small facet of Hawaii agriculture that is increasing in importance, also requires uncontaminated media. If local materials could be pasteurized for growing media, imports could be reduced. Growing media pasteurization has been demonstrated on a small scale using raw geothermal steam (Beck, 1989). Locally available materials such as volcanic cinder, shredded green waste, and sawdust could be steamed until extant pathogens were killed. 7) Balneology Warm springs near Kawaihae, on Hawaii's western coast were mentioned by the explorer and missionary William Ellis in 1826 as being used by the local residents, some of whom attributed medicinal qualities to the water (Woodruff & Takahashi, 1990). Currently, natural geothermally heated brackish ponds are attractions at a County coastal park in the Kapoho region, as well as in private residential developments along the Puna coast. In part due to the popularity of "onsen," naturally heated pools and bathing facilities in Japan, and the large number of Japanese visitors to Hawaii, geothermal spas have been the subject of several studies and have been proposed for the Kapoho area by at least one private developer. An analysis performed for the State in 1988 noted that Hawaii is ideally suited for the health spa industry, and that a major potential market for health spas exists among typical Hawaii visitors (GrantThomton, 1988). The temperature and chemical composition of the naturally heated groundwater in the Kapoho region are within the range of spas developed elsewhere in the world (Woodruff & Takahashi, 1990). Other regions on the island of Hawaii, notably the area around the town of Pahala near Kilauea's southwest rift zone, as well as other Hawaiian islands may also have suitable thermal groundwater resources (GeothermEx, 1999). 0 Gill 8) Other ventures Other ideas for the direct use of geothermal heat in Hawaii have been suggested or investigated. These have included the production of cement bonded wallboard, ethanol distillation, freeze drying of Kona coffee or other products, protein recovery from green leaf crops for animal feed, and milk pasteurization (Moreau, 1980). Geothermal heat has also been suggested as a method to disinfest papayas of fruit flies prior to export (Beck, 1989) or to supply heat to a community incubator kitchen (Mizuno, pers. comm., 2004). Heat pumps, one of the most extensive uses of geothermal energy in the U.S., can provide both space heating and cooling. Cooling is a major load for most commercial buildings in Hawaii. Untreated geothermal steam has also been used to fix dyes in hand painted silk, while hand blown glass formulae and cast bronze refractory materials utilized the silica byproduct of the now -closed HGP -A well (Beck, 1989). Other artistic uses of the geothermal resource may be identified. Current Regulatory Environment There are six major aspects of geothermal regulations in Hawaii: 1) the definition of a geothermal resource; 2) land use districts, including Geothermal Resource Subzones; 3) Geothermal Resource Permits; 4) drilling permits; 5) underground injection control permits; and 6) air quality permits. According to the Hawaii Revised Statutes (HRS) Section 182-1, a "geothermal resource" is defined to exclude water having a temperature of 150°F or less. Thus, low-temperature resources are exempt from the specific regulations governing Subzones and State geothermal drilling permits. Groundwater in excess of 65.5°C (150°F) could also be tapped for geothermal direct use. State law allows these higher -temperature direct uses to be located regardless of Subzone boundaries, as long as the development is within urban, rural, or agricultural land use districts. If the development is within a conservation district, it must then be located within a Subzone. If the direct use developer is working with groundwater that is no hotter than 65.5°C (150°F), the State permitting process is the same as for a normal water well. The Commission on Water Resource Management, within the Department of Land and Natural Resources (DLNR), would handle the permits (GeothermEx, 1999). If it is expected that groundwater hotter than 65.5°C (150°F) will be encountered, the well would be considered a geothermal well, and the developer will need to obtain a Geothermal Exploration Permit and a Geothermal Well Drilling Permit, pursuant to the terms of HRS Chapters 174C and 182, and the corresponding set of DLNR Administrative Rules (Title 13, Chapter 183). The Land Division, Engineering Branch of DLNR is responsible for regulating geothermal development. 7 Gill The County of Hawaii requires that a Geothermal Resource Permit (GRP) be secured from the Planning Commission for any geothermal development activities in a Geothermal Resource Subzone within a State agricultural, rural or urban land use district. Geothermal development activities include research or commercialization purposes, exploration development or production of electrical energy from geothermal resources, or as otherwise defined in HRS, Section 205-5.1. Further review of the Planning Commission rules would need to be conducted in order to determine whether a GRP would be required for any geothermal direct use development. Injection wells are regulated by the State Department of Health (DOH) under HRS Chapter 340E and the corresponding DOH Administrative Rules (Title 11, Chapter 23). Water from some direct use applications, such as spas, might require an injection well permit (GeothermEx, 1999). For many direct use developments, an air quality permit would not be required. It is unlikely that hydrogen sulfide, present in deep geothermal fluids, will be a significant factor in shallow groundwater. The ambient air quality standards for the State are given in HRS 342B and the corresponding DOH Administrative Rules (Title 11, Chapters 59 and 60). Under these rules, the limit for hydrogen sulfide in ambient air is 25 parts per billion, averaged over a one-hour period (GeothernrEx, 1999). Expected Results The following actions are among the public information program's expected results. A) Investment in individual direct use enterprises. Private businesses, after learning the benefits of direct use to their operations, may make independent investments in infrastructure and facilities to take advantage of geothermal heat. B) Investment in an incubator/enterprise park. Public and private entities may choose to jointly or independently establish a geothermal direct utilization enterprise park. C) Modification of County and/or State regulations to encourage the direct utilization of geothermal resources. Public discussion and input are expected to generate ideas regarding appropriate permitting for direct use projects. These ideas will be considered by the appropriate government agencies. D) Use of public funds to support direct use. The outreach efforts may result in local businesses taking advantage of existing public funding programs, including those managed by the U.S. Department of Agriculture. Furthermore, community input may suggest that the County modify its regulations to appropriate portions of the Geothermal Asset Fund and/or Geothermal Royalty Fund to support direct use activities. Acknowledgements Gill The members of the project team, including Susan Gagorik, Margarita Hopkins, Alice Kawaha, Dr. John Lund, and Barry Mizuno, contributed substantially to this paper during reviews and interviews. In addition to the team members cited as sources of specific technical information, Dr. Raymond Carr, energy coordinator for the Hawaii County Research and Development Department, and Dr. Donald Thomas, director of CSAV, provided extensive input and valuable suggestions. References Beck, Andrea Gill, 1989. "Experiments in Direct Use at Noi`i O Puna." Geothermal Resources Council Transactions, vol. 13; October 1989, p. 3-9. Boyd, Tonya L., D. Thomas and A. Gill, 2002. "Hawaii and Geothermal, What Has Been Happening?" Geo -Heat Center Quarterly Bulletin, v. 23, no. 3, p. 11-21. Chen, Bill H. et al, 1982. Utilization of Geothermal Heat in Tropical Fruit Drying Process. State of Hawaii Department of Business, Economic Development and Tourism. Data Book 2003. County of Hawaii. Online. <http://co.hawaii.hi.us/databook current/dbooktoc.htm>. GeothermEx, Inc., 1999. Development Opportunities for Geothermal Spas in the State of Hawaii. State of Hawaii Department of Business, Economic Development and Tourism. GeothermEx, Inc., 2000. Update of the Statewide Geothermal Resource Assessment of Hawaii. State of Hawaii Department of Business, Economic Development and Tourism. GrantThornton, 1988. Business Opportunity Report Hawaii: Health Spas. Prepared for Hawaii Department of Business and Economic Development, and the Chamber of Commerce of Hawaii. Hirai, W.A. & Associates, Inc., 1983. Final Report. Feasibility of an Ice -Making and Cold Storage Facility Using Geothermal Waste Heat in Puna District, Island of Hawaii. County of Hawaii Department of Research and Development. Hopkins, Margarita; County of Hawaii Research and Development Department. Personal communication; 9 February 2004. Kawaha, Alice and S. Gagorik; County of Hawaii Planning Department. Personal communication; 17 February 2004. Kern, Robert; Tropical Ponds Hawaii. Personal communication; 3 March 2004. Lund, John; Oregon Institute of Technology Geo -Heat Center. Personal communication; 29 March 2004. Mizuno, Barry; Puna Geothermal Venture. Personal communication; 20 February 2004. Moreau, James W., 1980. Final Report. Pahoa Geothermal Industrial Park. Engineering and Economic Analysis for Direct Applications of Geothermal Energy in an Industrial Park at Pahoa, Hawaii. Prepared by Hawaiian Dredging and Construction Company for the U.S. Department of Energy. Okahara/Shigeoka & Associates, 1982. A Cost Structure for a Tropical Fruit Drying Pilot Plant Utilizing Geothermal Waste Heat. State of Hawaii Department of Business, Economic Development and Tourism. Woodruff, James L. and P. Takahashi, 1990. "Geothermal Spas: A New Business Opportunity in Hawaii." Geothermal Resources Council Transactions, v. 14, Part I, p. 819-825. X Harry Kim Manor County of Hawaii DEPARTMENT OF RESEARCH AND DEVELOPMENT 25 Aupum Street, Room 219 • Hilo, Hawaii 967204252 (808)961-8366 • Fax (808) 935-1205 E-mail: chresdev@intemac.net NEWS RELEASE Contact: Margarita Hopkins, Agricultural Specialist, 961-8369 Expert in Non -Electric Uses of Geothermal Heat to Speak Although the most common uses of geothermal energy worldwide are for non -electric purposes, such as heating spas or greenhouses, Hawaii has little experience with this aspect of natural volcanic heat. Big Island residents may enjoy the "hot ponds" in Puna or relax in the sauna -like steam from natural vents, but there is a lot of potential that is as yet untapped. Invited to the Big Island to share his knowledge of non -electric uses of geothermal energy, Dr. John Lund, director of the Oregon Institute of Technology's Geo -Heat Center, will be making several public presentations in Hilo. Jane H. Testa Director Dr. Lund's experiences range from district heating projects in Klamath Falls, Oregon, site of the Geo -Heat Center, to the popular "Blue Lagoon" swimming pond in Iceland and acres of chrysanthemum -filled heated greenhouses in Utah. One of his recent projects was assisting the Confederated Tribes of Warm Spring Reservation in Oregon with the development of a geothermal swimming pool and hot tubs for tribal use as well as a visitor attraction. For more information on direct use of geothermal heat, visit the Geo - Heat Center's website at http://geoheat.oit.edu. Among the enterprises that might benefit from the direct use of geothermal heat on the Big Island are a lumber -drying kiln, dehydrators for papaya and other produce, and facilities to pasteurize growing media for greenhouses. Dr. Lund's presentations are part of a continuing investigation into geothermal direct use undertaken by the County of Hawaii. The following meetings are open to the public: 1. The County Council's Committee on Human Services and Economic Development, County Council Chambers, Tuesday, August 16th, 2005, 10:00 am -11:00 am 2. Agricultural Commodity and Business Groups, Cooperative Extension Service Conference Room A, Tuesday, August 16, 2005, 1:00 pm — 2:30 pm, for information contact Margarita Hopkins at 961-8366 or mhopkins@co.hawaii.hi.us. 3. Community Meeting, Tuesday, August 16, 2005, Pahoa Community Center, 5:00 pm — 7:30 pm, for information contact the Hawaii County Resource Center at 961-8085 or hcrc@co.hawaii.hi.us. 4. Rotary Club of Hilo Bay, Naniloa Hotel, 10th floor, Wednesday, August 17, 2005, 6:45 am — 8:00 am, $5.00 for coffee and presentation, $8.50 for breakfast and presentation, for reservations call Julie at 990-0426 or Anita at 756-2119. Hawaii County is an Equal OppornmityFrovidcr and Employer GEOTHERMAL DIRECT USE COMMUNITY MEETINGS Dr. John Lund, director of the Oregon Institute of Technology's Geo -Heat Center has been invited to the Big Island to share his knowledge of non -electric uses of geothermal energy. Dr. Lund's experiences range from district heating projects in Klamath Falls, Oregon, site of the Geo -Heat Center, to the popular "Blue Lagoon" swimming pond in Iceland and acres of chrysanthemum -filled heated greenhouses in Utah. One of his recent projects was assisting the Confederated Tribes of Warm Spring Reservation in Oregon with the development of a geothermal swimming pool and hot tubs for tribal use as well as a visitor attraction. For more information on direct use of geothermal heat, visit the Geo - Heat Center's website at http://geoheat.oit.edu. Among the enterprises that might benefit from the direct use of geothermal heat on the Big Island are a lumber -drying kiln, dehydrators for papaya and other produce, and facilities to pasteurize growing media for greenhouses. Dr. Lund's presentations are part of a continuing investigation into geothermal direct use undertaken by the County of Hawaii. The following meetings are open to the public: 1. The County Council's Committee on Human Services and Economic Development, County Council Chambers, Tuesday, August 16`", 2005, 10:00 am -11:00 am 2. Agricultural Commodity and Business Groups, Cooperative Extension Service Conference Room A, Tuesday, August 16, 2005, 1:00 pm — 2:30 pm, for information contact Margarita Hopkins at 961-8366 or mhopkins@co.hawaii.hi.us. 3. Community Meeting, Tuesday, August 16, 2005, Pahoa Community Center, 5:00 pm — 7:30 pm, for information contact the Hawaii County Resource Center at 961-8085 or hcrc@co.hawaii.hi.us. 4. Rotary Club of Hilo Bay, Naniloa Hotel, 10`" floor, Wednesday, August 17, 2005, 6:45 am — 8:00 am, $5.00 for coffee and presentation, $8.50 for breakfast and presentation, for reservations call Julie at 990-0426 or Anita at 756-2119. Harry Kim Mayor August 9, 2005 County of Hawaii DEPARTMENT OF RESEARCH AND DEVELOPMENT 25 Aupuni Street, Room 219 • Hilo, Hawaii 96720-4252 (808) 961-8366 • Fax(808)935-1205 E-mail: chresdev@inrerpac.nci To: Geothermal Direct Use Working Group From: Day Day Hopkins Aloha Working Group Members, I am sending you a copy of the press release with the venue, time and date of each public meeting that will be held with Dr. Lund. Please feel free to use this information to invite others to the meetings. Please let me know if you have any questions about the meetings. I want to remind you that we will be using the same format with informational tables for the upcoming community meeting in Pahoa that we used for the last community meeting. Thank you, Margarita Hopkins Hawaii County is an Equal OpportunityProvider and Employer Jane H. Testa Director GEOTHERMAL DIRECT USE COMMUNITY MEETINGS Dr. John Lund, director of the Oregon Institute of Technology's Geo -Heat Center has been invited to the Big Island to share his knowledge of non -electric uses of geothermal energy. Dr. Lund's experiences range from district heating projects in Klamath Falls, Oregon, site of the Geo -Heat Center, to the popular "Blue Lagoon" swimming pond in Iceland and acres of chrysanthemum -filled heated greenhouses in Utah. One of his recent projects was assisting the Confederated Tribes of Warm Spring Reservation in Oregon with the development of a geothermal swimming pool and hot tubs for tribal use as well as a visitor attraction. For more information on direct use of geothermal heat, visit the Geo -Heat Center's website at http://geoheat.oit.edu. Among the enterprises that might benefit from the direct use of geothermal heat on the Big Island are a lumber -drying kiln, dehydrators for papaya and other produce, and facilities to pasteurize growing media for greenhouses. Dr. Lund's presentations are part of a continuing investigation into geothermal direct use undertaken by the County of Hawaii. The following meetings are open to the public: 1. The County Council's Committee on Human Services and Economic Development, County Council Chambers, Tuesday, August 16th, 2005, 10:00 am -11:00 am 2. Agricultural Commodity and Business Groups, Cooperative Extension Service Conference Room A, Tuesday, August 16, 2005, 1:00 pm — 2:30 pm, for information contact Margarita Hopkins at 961-8366 or mhopkins@co.hawaii.hi.us. 3. Community Meeting, Tuesday, August 16, 2005, Pahoa Community Center, 5:00 pm — 7:30 pm, for information contact the Hawaii County Resource Center at 961- 8085 or hcrc@co.hawaii.hi.us. 4. Rotary Club of Hilo Bay, Naniloa Hotel, 10`" floor, Wednesday, August 17, 2005, 6:45 am — 8:00 am, $5.00 for coffee and presentation, $8.50 for breakfast and presentation, for reservations call Julie at 990-0426 or Anita at 756-2119. NEWS RELEASE Contact: Margarita Hopkins, Agricultural Specialist, 961-8369 Expert in Non -Electric Uses of Geothermal Heat to Speak Although the most common uses of geothermal energy worldwide are for non -electric purposes, such as heating spas or greenhouses, Hawaii has little experience with this aspect of natural volcanic heat. Big Island residents may enjoy the "hot ponds" in Puna or relax in the sauna -like steam from natural vents, but there is a lot of potential that is as yet untapped. Invited to the Big Island to share his knowledge of non -electric uses of geothermal energy, Dr. John Lund, director of the Oregon Institute of Technology's Geo -Heat Center, will be making several public presentations in Hilo. Dr. Lund's experiences range from district heating projects in Klamath Falls, Oregon, site of the Geo -Heat Center, to the popular "Blue Lagoon" swimming pond in Iceland and acres of chrysanthemum -filled heated greenhouses in Utah. One of his recent projects was assisting the Confederated Tribes of Warm Spring Reservation in Oregon with the development of a geothermal swimming pool and hot tubs for tribal use as well as a visitor attraction. For more information on direct use of geothermal heat, visit the Geo -Heat Center's website at http://geoheat.oit.edu. Among the enterprises that might benefit from the direct use of geothermal heat on the Big Island are a lumber -drying kiln, dehydrators for papaya and other produce, and facilities to pasteurize growing media for greenhouses. Dr. Lund's presentations are part of a continuing investigation into geothermal direct use undertaken by the County of Hawaii. The following meetings are open to the public: 1. The County Council's Committee on Human Services and Economic Development, County Council Chambers, Tuesday, August 16th, 2005, 10:00 am -11:00 am 2. Agricultural Commodity and Business Groups, Cooperative Extension Service Conference Room A, Tuesday, August 16, 2005, 1:00 pm — 2:30 pm, for information contact Margarita Hopkins at 961-8366 or mhopkins@co.hawaii.hi.us. 3. Community Meeting, Tuesday, August 16, 2005, Pahoa Community Center, 5:00 pm — 7:30 pm, for information contact the Hawaii County Resource Center at 961-8085 or hcrc@co.hawaii.hi.us. 4. Rotary Club of Hilo Bay, Naniloa Hotel, 10th floor, Wednesday, August 17, 2005, 6:45 am — 8:00 am, $5.00 for coffee and presentation, $8.50 for breakfast and presentation, for reservations call Julie at 990-0426 or Anita at 756-2119. Attachment 10 Invoice Attachment 10: Invoice Geopowering the West Program INVOICE #1 DATE: September 30, 2005 Contract #: LOA -05-025 P.O. #: 5968 Contract Period: September 2, 2004 — September 30, 2005 Reporting Period: October 1, 2004 — September 30, 2005 Cumulative Prior Balance Deliverables Budget Expenditure Amt. This Invoice Remaining 1.0 Semiannual report including a record of a public meeting featuring a nationally recognized expert in geothermal direct use $4000.00 0 $4000.00 2.0 Final project report and completion of all services $5,560.00 0 $5560.00 TOTAL AMT. OF INVOICE $9560.00 CERTIFICATION: I certify to the best of my knowledge and belief that this invoice is correct and complete and that any and all charges are for the purpose and conditions of this contract. � I I MARGARITA H�OPKINS Economic Development Specialist (808)961-8369 Date MAKE CHECK PAYABLE TO: County of Hawaii Department of Research and Development