Testing energy alternatives: Isolation makes Hawaii hospitable to new technologies

Honolulu --- Thirty minutes away from the conference center where world leaders are gathering today to discuss climate change, workers at the HPower incineration plant are converting yesterday's garbage into this afternoon's electricity.

On the shores of Hawaii's Big Island, government researchers and private companies are developing ways to turn algae into biodiesel fuel.

On Maui, wind farms generate enough power for 11,000 homes and replace the need for 236,000 barrels of imported oil annually. Elsewhere, companies are tapping into vents beneath the sea and under Hawaii's volcanoes to generate geothermal power.

Hawaii's pioneering push for alternative energy is one of the reasons the White House picked Honolulu for a meeting of world economic leaders to discuss climate change and energy security.

It's also why the U.S. Department of Energy this week announced an unprecedented project to make Hawaii produce 70 percent of its energy from renewable sources by 2030.

Through state and federal investments, tax credits and new policies, the Energy Department and Hawaii hope to attract billions of dollars in new clean-energy development and turn Hawaii into a national test for renewable energy.

"We need to be able to go to a place where people can look and feel and touch and see the integration of these things in society as commonplace," Assistant Energy Secretary Andy Karsner said in an interview here. "That's what Hawaii can give us."

Of course, some of Hawaii's green energy projects are tied to its unique resources. But some innovative projects could eventually make their way to the mainland.

St. Paul, Minn.-based Market Street Energy Co., for instance, wants to build a system in Honolulu that uses seawater to provide air conditioning for office buildings. Already, the company is looking to expand into other states --- including Florida --- if it's successful, said Bill Mahlum, CEO of Market Street subsidiary Honolulu Seawater Air Conditioning.

"We've had a wonderful reception in Hawaii," said Mahlum, whose company plans to break ground on the $140 million system in January. It plans to supply air conditioning to dozens of downtown Honolulu high-rises by pumping cool ocean water underneath the city.

Royal Dutch Shell is building a research center in Hawaii to turn algae into fuel. If it works, Shell could eventually build a full-fledged algae refining plant elsewhere. Companies are working on ways to turn palm oil, sugar cane and other crops into fuel in Hawaii.

"We really like to view ourselves as a living lab for the deployment of these technologies in a very replicable manner," said Maurice Kaya, chief technology officer for Hawaii's energy department.

Because of its isolation, Hawaii is one of the biggest per-capita importers of fuel oil products. The state gets about 90 percent of its energy from imported oil and traditionally has the nation's highest gasoline prices.

"They [Hawaiian lawmakers] want people like us," said Paul Gaynor, CEO of UPC Wind Energy, which operates a wind energy operation in Maui and plans to expand throughout Hawaii.

ENERGY --- FROM EVERYTHING BUT OIL

Researchers and private companies are making the nation's 50th state a leader in clean-energy innovation. Some examples:

WATER

* Researchers are exploring ways to turn wave energy into electricity, technology that could someday find its way to mainland states such as Florida, Georgia and Texas. Other researchers are exploring ways to tap into both hot thermal vents and cool trenches under the sea to generate electricity and drive new types of commercial air conditioning systems.

WIND

* The amount of energy Hawaii gets from wind farms grew by more than 1,000 percent last year. The state's relatively isolated pockets of population make it ideal for companies that specialize in small wind energy operations, similar to rural areas in other parts of the country.

BIOFUELS

* Companies and researchers in Hawaii are working on ways to convert oil found in algae, palm trees, sugar and other sources into fuel for vehicles and power plants. Their findings could be key, given rising worries over using corn and other important food crops for ethanol.

SOLAR

* Earlier this month, the state launched a project to develop large solar installations on government buildings throughout the islands, cutting the need for an estimated 130,000 barrels of oil a year. The initiative is one of the largest state solar programs in the country.

GEOTHERMAL

* Hawaiian companies are tapping into hot pockets beneath volcanoes to generate geothermal heat. Though most states don't have volcanoes, their findings could someday help geothermal exploration elsewhere.