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HomeMy WebLinkAboutCOM 0073.002 2010-2012 Frequently Asked Questions (FAQ) Regarding the Aina Koa Pono Ka`u Energy Farm 2/18/2011 Project Details What Technology will be used for producing biofuel? We will be using an established technology called microwave thermal depolymerization of cellulosic material. This technology applies heat and pressure to organic material to produce biofuel and biochar. What independent information is available about the viability and safety of the proposed biofuel production technology? Microwave technology has been used in the food processing and pharmaceutical industries for the past 50 years. Our technology is no different than that technology and we will use the same safety and operational precautions as used in those industries. Where else has this type of facility produced biofuel on a similar scale? This is new application of 50 year old technology currently being used in the food processing and pharmaceutical industries. What is the environmental impact? The project in and of itself benefits the environment by reducing green house gases and CO' emissions. A model used by the U.S. Department of Energy called the GREET model finds that the production of biodiesel as well as the use of biodiesel produces less GHG and emissions than petroleum and will result in a net reduction through the growth of biomass. There will be no SOX, NOX, heavy metals, or particulates from our facility. The carbon dioxide from our facility will be absorbed by the biomass feedstock crops. Does the proposed project require an Environmental Assessment (EA) or Environmental Impact Statement (EIS)? There are no current "triggers" that require an Environmental Assessment (EA) or Environmental Impact Statement (EIS), but we will comply with all Federal and State requirements. We will be preparing an EA and are continuing investigation into whether an EIS will be required. How does burning biofuel reduce greenhouse gases? Biofuels burn cleaner than petroleum fuels, producing far less green house gases than petroleum fuels and have less particulates released into the air. Biofuels also provide a "carbon sink" advantage by growing crops, which absorb carbon dioxide. (U.S. Dept. of Energy) Will there be a smell from the plant or processing? The only smell created by this process will be that of "sawn lumber" which is comparable to the smell of a lumber yard. There will be no gasoline or chemical smells associated with the plant or processing. Why don't you use technology like solar, which has less demand on land resources? We are not considering the use of solar power generation in our projects. Solar power is not economically feasible without significant government subsidy, and more importantly, solar power will not produce liquid fuel for transportation or electricity generation in the HELCO plants. HECO, on the other hand has solar programs in place, but AKP will not be participating in that area. Where is the project located? The project will be located in the Ka 'u District on the Big Island of Hawaii. The location is on the property owned by the Olson Trust approximately 1.5 miles from the town of Pahala. How much fuel per acre will you produce? Our facility will produce between 3,000 and 5,000 gallons per acre per year, depending on the feedstock. Comm. No. 73.z Ref. Tot e/ A p/6sc ref. Dare 2 2011 Aina Koa Pono — Ka'u Energy Farm — FAQs 2/18/2011 Is there a potential to use this for ground transportation? Yes. The process will produce biodiesel or "synthetic diesel" that could be used for electric generation, transportation and similar uses. AKP appears to have a lack of expertise, specifically agronomists. We are bringing on board a number of subject matter experts. We are working with the Hawaii Agricultural Research Center in developing optimal varieties of feedstock for our plant. We have retained John Carroll, an agronomist, to assist us in the agricultural aspects of our project. We have also retained John Cross and James Cuddihy, both of whom were involved in the sugar business in Ka'u for many years with the Ka'u Sugar operation and will provide significant insight. We are prepared to retain other expertise as required. What is the price of biofuels being sold to HECO? This is proprietary information under the terms of the contract with HECO. Is there a project timeline available? Yes, a general timeline would consist of the following: Develop design, obtain permits, and equipment purchase Through to July 2012 Construction January 2012 — Dec 2013 Full operations Jan 2014 Natural Resources What crops will be grown to supply the facility with biomass? As of right now, sweet sorghum and eucalyptus. There is the possibility that other grasses may be considered; if that is the case only those that are classed as non - invasive will be pursued. Other than grown crops, AKP will receive invasive plant species to Hawai'i collected for destruction that already grow in Ka'u - such as Christmas Berry and Guinea Grass. AKP is working closely with the Department of Agriculture, University of Hawaii, and others to provide a means for disposal and eradication of invasive species of plants in Hawaii. Prior to our Ka'u Energy Farm, their effort to eliminate or even reduce alien plants was limited because there was no means to destroy the plants once they were collected. Our facility can provide the means they were missing. How much land are you using? Are you cutting down forests? AKP has leased 12,800 acres from the Olson Trust and the Mallick family. As such we are only using about 1 /10th of the agricultural land in Ka'u — and NONE of the conservation forest land. How do you plan to water your crops, given Hawaii has been in drought conditions? The region has successfully grown sugar cane without additional irrigation. Since sorghum requires only 2/3 of the water needs of sugar cane, we do not anticipate requiring irrigation, but should a need arise, there is a reservoir available on the leased property. Have the crops and their management regimes (e.g., mechanical harvesting) been tested in a range of site, drought, and air quality conditions in Ka'u? The existing land has already demonstrated the ability to grow grasses. We will work with the USDA Farm Service Agency with their Biomass Crop Assistance Program (BCAP) to develop the land for growing biomass. Can the crops produce the volume of biomass needed to produce 16 million gallons of biofuel per year? Yes. The volume biomass needed will be grown on less than half of the land AKP has leased. .. 2 9 R Aina Koa Pono — Ka'u Energy Farm — FAQs 2/18/2011 How might the crops and their management impact Ka'u's other agricultural activity such as coffee growers, vegetable farms, cattle ranchers, forests, and coastal areas? Our feedstock crops should have no impact on other agricultural activity, forests and coastal areas Our facility should be beneficial to coffee growers, macadamia nut farms, and cattle ranchers. We can use the waste products from their operations e.g., macadamia nut hulls, old non productive trees, coffee fruit pulp. We are looking to partner with cattle ranchers to develop dual land use in which the rancher and our biomass production can exist side by side. Various sterile grasses are being considered which grow extremely quickly so the cattle can graze on our farm without impacting the production needed for feedstock. Cattle farmers will experience some impact from the additional management of relocating cattle in and out of land for grazing (i.e. between crop cycles), but it will be minimized where possible and there will be gains in the form of increased pasture land as invasive species are removed and crops grown in their place. What other inputs will the crops need (e.g., fertilizer, pesticides, etc.), and how will their use be managed? We will need minimal fertilization with the grasses which we expect to plant. We can also use some of the biochar that we will be producing in our plant as a soil amendment. This will allow much faster growth of our feedstock. We do not anticipate the use of pesticides on this project. Community Assuming some of the construction workers come from off - island (or from outside Ka`u and don't want a long daily commute), where will they be housed? And how will that impact the affordability of housing for local families? How will other impacts of a significant, temporary increase in population be mitigated? We will engage local sources to the maximum extent to perform the construction. This project is small enough that the number of people potentially brought in from outside the island to assist in construction could be housed locally and would not increase the population in any significant way. How does the project affect home values? We are not able to predict the impact on the housing market, however we may expect to see a short term gains in home values during construction which will level off after the facility is in operation. What roads will be used, what improvements will be required, and what arrangements are being made with the roads' private owners? Private roads are in the lessor's lease and AKP will maintain those roads. During both construction and operation, how much traffic, noise, odor, waste, and emissions will be produced, and how will they be mitigated? Typical for a project of this size — Best management practices will be used as required by permits. How will the biofuel be safely stored and transported? We will design and construct fuel storage facilities as currently done in the U.S. The permitting process will assure compliance with all safety considerations, including county fire department approvals. Will any of the energy produced be used or available in Ka`u? Yes. Electricity sold to HELCO will be available in Ka'u. What impact will the project have on Ka`u's rural lifestyle? It is the intention of AKP to enrich Ka`u; the community will continue to maintain its lifestyle. 3 Aina Koa Pono — Ka'u Energy Farm — FAQs 2/18/2011 What community benefits is AKP willing to commit to communities in Ka'u? How will the project's economic benefits be distributed? AKP is deeply committed to community giving in Ka'u. Although it is premature at this point in the project to identify specifics, AKP is committed to giving back to the community and is open to receiving community input for future consideration. How does the project create jobs for people in the community? We project that approximately 150 to 200 permanent jobs will be created by this project. How many of the construction and operations jobs will be filled by residents of Ka'u and Hawaii Island? We hope to fill as many of the jobs available by local hires. It does not make sense to bring in outside personnel unless the capability is not available locally. What training, education, and workforce development will be provided to prepare local residents for the available jobs? We are already meeting with Big Island Labor Alliance, Work Hawai'i, and the University of Hawai'i. We will work with the County Planning Department, the local high schools, and unions to develop training programs to fill our needs. Economy Is the project economically viable? Yes. What are the basic assumptions of AKP's finance and business plans? To sell fuel and electricity to HELCO and to grow our own feedstock to contain costs. We have a 20 -year contract for our biofuel. How will other sectors of the local economy, like tourism, be impacted? The local economy should benefit greatly from more locally available high paying jobs, creating new businesses locally to support the additional jobs created, and to bring in tourists who will be visiting Ka'u to see how our plant operates. Our plant will be hidden from the view of residents to the greatest extent practicable. Our plant will have no negative effect on Ka'us tourism economy. Will the project result in greater economic diversity or dependence? Economic independence will be a side benefit as other service industries spring up in Ka'u. As Ka'u is primarily an agricultural area, by adding a new type of facility gives greater diversity. This also means that it will make Ka'u more resilient to unexpected changes. For example, currently a poor crop of macadamia nuts or coffee depresses Ka'u because there is little else generating the economy. Once AKP's facility is in place even an exceptionally dry or wet season will not affect the generation of biofuel and that will help keep the local economy regulated. 4