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Home My WebLink AboutCOM 0764.001 2010-2012COMMUNICATION NO. 764 Comm. lo. ` • Ref. To: sen AVdESG Ref. Date JUL 2 2012 Introduction • IDG Established in 1998 • Hawaii Based Company • Majority Native Hawaiian Owned and Operated • IDG has the Profile and Experience in developing energy opportunities in Hawaii and the Pacific 1DG INNOVATIONS DEVELOPMENT GROUP Current Projects in New Zealand Taheke 8C & Adjoining Blocks, Inc. ►ice Rotorua )thermal Development Consultancy) Te Ahi O Maui GEOTHERMAL PROJECT A8D Ahu Whenua Trust Kawe ra u (Geothermal Development - Developer of Record) New Zealand Testimonial Video eastland.co.nz IDG CONSORTIUM (SCIENCE / TECHNOLOGY / ENGINEERING astland Group NZ Generation & Transmission Company skmconsulting.com Dr. Sadiq Zarrouk IDG Geothermal Science Advisor - PhD: Engineering Science - ME: Engineering - PGDip: Geothermal Energy Technology - BSc in Nuclear Engineering SINCLAIR KNIGHT MERZ _SNM Sinclair Knight Merz (SKM) Geothermal Engineering Consultants gns.cri.nz GNS SCIENCE TE PU AO GNS Science Geothermal / Earth Science Consultants 1881 King Kalakaua & American Inventor Thomas Edison Past Mistakes & Problems • Cultural issues - Nu CONSULTATION • Selection of Site & Technology • Cultural access for Gathering, Worship, Heritage Protection /Preservation • Negative Impact to Native "religious belief system" (Tutu Pele) • Environmental Issues • Exploratory Problems & Dangers • Conservation Options were not pursued • No Benefit for: • Local (Hawaii Island) Consumers • Native Hawaiians • Residents of Community • No broader vision for Hawaii and its Residents (Native and Others) Benefits from Past Experiences • Pele Defense Case has SET Standards for the Public and Native Stakeholders • Development of Subsurface Estate need not Destroy or Damage Surface Estate • EIS Laws (HRS Chapter 343) now Amended to include Cultural Impacts • Community Involvement, Consultation and Education Should Precede Hearings and Permitting • Native to Native and Community Collaborative Models create specific adaptions to Hawaii Native to Native Model • United Nations Declaration on the Rights of Indigenous Peoples (Ratified in September 2007) • Development & Improvement of Resources in an EQUITABLE WAY • Protection of Cultural Sites • Environmental Sustainability • Trust Fiduciary Principles UNITED NATIONS DECLARATION ON THE RIGHTS OF INDIGENOUS PEOPLES Cenral- Burnt STAKEHOLDERS (Community Collaboration Model) • State Government • Establish Policy Framework - Legislature • Facilitate subzone designation, permits and regulatory process • Facilitate Tax Incentives • Revenue Bond • Public Utilities Commission (PUC) • Land Use Commission (LUC) • Local County and District • Facilitate Regulatory Process (Fast Track and Stream! • Obtaining Easements and access Rights • Local Community to Resource • Host Community • Regional Community - Island Wide • Native Hawaiian Community P 0 • Policies for Energy New & Corn prehe • Open & Transparent Development Proce N• No Violation of Culture or Damage to Environment O• Opportunities for the Community to Participate & Benefit Culturally iwrrta l ly S1inable E y Sensible Culturally Appropriate Oversight By Native Development Partners - Native to Native Model: • Cultural Protections undertaken in compliance with established judicial processes here in Hawaii • Project Development Agreement (PDA) includes Cultural Protection Measures & Protocols for ALL Cultural Resources: 1.Identification & Preservation of all cultural resources 2. Utilization of cultural vehicles & mechanisms for project 3. Retention of Project Consultants and Subcontractors for Cultural Protection 4. Designation of Project "Footprint" & implementation of mitigation /curator plans if noodor1 Environmentally Sustainable • OIL / GAS Related Issues & Problems NOT SUSTAINABLE • Fuel Toxicity in Environment Fossil Fuel Cost • Greenhouse Gas emissions Increases • Ciguatera • Security Issues - Political, Social and Food • Volatile and Unpredictable OIL / GAS Market Pricing • Oil Prices expected to reach $200+ per barrel by 2013- 2014 • Energy Self- Sufficiency for each Island via a diverse energy portfolio mix of Renewable Generation Minimal Impact to Ground Water Reservoir Casing Protecting Water Reservoir Dr. Donald M. Thomas Geochemist • Director of Center for the Study of Active Volcanoes - University of Hawaii Institute of Geophysics and Planetology COMMUNIY BENEFITS Stakeholder Benefits (50 MW Project) Create Community Trust from shared Revenues of Project $1.25 M (2% of Gross Income) annually x 50 years (Term) $63 M 1. Fair and Reasonable Cost to Ratepayers 2. Job Training and Onsite Employment Opportunities 3. Scholarships and Educational Opportunities 4. Public Private Partnership (PPP) becomes Publicly owned utility Taheke 8C & Adjoining Blocks: Project Security Guard STEAM & ENERGY use for Agriculture and Small Business Opportunities STAKEHOLDER BENEFITS (50 MW Project) COST or DISCOUNTED • Secondary Small Business Opportunities - "Cascading Effect" • Ammonia for Fertilizer • Hydrogen Economy Exploration & Development • Electric Car Battery J C rF CD 90 30 CD D CD CT CD v H CD n 0 � o ( 1 ) CO c -cl k < 71 ...0 0 CD (/) 7m. --u-oftwad 6u-A-1 Jo. at weals ieutieLpeo jo ash Toaqa Food Drying Using Geothermal Steam Geothermal Hot / Greenhouses Agriculture Based Climate Control Aqu. .onics Greenhouse Garden Hydrogen Energy System Water ''►rf electricity generation e—Th arr=TI" P" TP' Transportation 1 �' ,---,s----' •4 �-� Energy Residential Commercial industrial Water Primary Energy Energy Energy Sources Sectors ing Source: United Nations Industrial Development Organization. The Hydrogen Infrastructure . Defined. Developed. Delivered. Persona{ Fuel (PFA) Ftydrogen Rod Stange Production Well Separalorn Geothermal Rceervoir l,i „tli. nn.,l I IuiJ ,■ II: Direct Production of Hydrogen Geothermal ONLY technology that makes Free Hydrogen Creation Sustainable Hydrogen Economy NVIR NM Hawaii Energy Crisis • Hawaii is most Oil Dependent and Energy Insecure State in the Union • Hawaii Relies on IMPORTED Fossil Fuel for > 90% of its energy needs • Hawaii exports $ 7 Billion USD annually for imported OIL • Hawaii Ratepayers pay highest electricity rates in the USA *8t-immrfaivwc§riltf\YtY Issues Hawaii's Energy Bounty • Hawaii has vast and extremely valuable renewable energy resources • Public Ceded Land Trust Assets • Geothermal "minerals" • Ocean Resources (within 3 mile limit): • OTEC - Ocean Thermal Energy Conversion • Tidal/Surge/Wave • Wind / Solar Energy Developments Hawaii State Energy Issues • Currently No State inventory of State owned energy resources • Lack of Capital to invest & develop • Lack of expertise in energy development • No private sector Energy / Tech relationships in US or International Arena Questions for the Hawaii County Council 1.Under the County General Plan, what are our County's needs for firm Power? 2. Has the County considered the need for firm power to safeguard and expand agricultural needs for food security for Hawaii & the State. Hawaii island is the food basket for the entire State, Puna & Hamakua are the agricultural areas for our island. 3.What kind of benefits does the County want to see for itself, its ratepayers and our local communities from geothermal development ? 4.1s the County Council supporting the mega development of geothermal energy in Puna by ORMAT /PGV an Israeli foreign company? Is the Council supporting the proposal by Mayor Kenoi for 700 MW of geothermal development with ORMAT /Leyte Geothermal Technology Development Corporation? 5.What are the County Council's energy development priorities? Development of energy resources for Hawaii Island; for an inter - island ISSUES THE COUNTY MUST ADDRESS 1) 2011 -2012 Legislative Measures re: Geothermal Energy - SB 2001 and SB 3003 and Act 55 (PLDC) 2a) 2012 U.S. Congressional Report investigating ORMAT 2b) 50 MW Request for Proposal (RFP) from HELCO / HECO and the 1989 Memorandum of Understanding (MoU) between HECO and ORMAT INNOVAT DEVELO GROUP DISCLAIMER * ** Any language to the contrary, nothing contained in or through IDG's website, and/or any commercial, animation, marketing materials in any format and /or material constitutes, nor is intended to constitute an offer, inducement, promise and /or contract of any kind. The content provided on this site is presented as a courtesy to be used only for informational purposes and is not represented to be representations or warranties of any kind with respect to this site or its content, such representations and warranties being expressly disclaimed. Innovations Development Group, Inc. 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