Hū Honua Site Improvements Update

A great deal of activity has been going on at the Hū Honua Bioenergy LLC (HHB) site.  HHB has been improving the area and preparing for reconstruction of the planned biomass-to-electricity facility.

Groundskeeping

In addition to clearing site grounds of overgrowth, outdated equipment and coal piles from when the facility burned coal have been removed. Water pipes will soon be excavated on the property site and on easements through nearby properties. Besides installing new pipes, HHB will trench and run conduits for power lines. The end result will be a more pleasant visual landscape as some poles and overhead wires will be eliminated.

Office Renovation

The old Pepe‘ekeo Sugar Mill office building, which now serves as the Hū Honua headquarters, has been renovated but retains its historic look.

The Timekeeper’s Shack next door has also undergone physical improvements, again keeping the original style, and will serve as a meeting room for HHB.

Contract Negotiations

Hū Honua is negotiating with Hawaiian Dredging Construction Company (HDCC) to renovate the facility. HDCC is Hawai‘i’s oldest and largest full-service construction company.  HHB is in negotiations with ESI Inc. of Tennessee for engineering and design services.

Contract talks are also underway with timber suppliers for the feedstock that will produce electricity. The biomass facility is expected to be operational 16-18 months from the beginning of signed contracts.

Refurbished Plant

Hū Honua is converting the former Pepe‘ekeo Sugar Mill into a clean, efficient biomass facility.

Hū Honua will displace about 250,000 barrels of oil per year, keeping that money in the local economy.

The following is an artist view of the refurbished plant at Pepe‘ekeo:

Community Relations

Introducing Hū Honua’s Community Outreach Coordinator…

Roberta Carriaga-De Motta manages Hū Honua’s office in Pepe‘ekeo and coordinates the company’s community outreach program.  Born and raised on the Big Island,  Roberta is in a unique position of working with the community: she understands the local culture and has deep-rooted relationships, making her a valuable asset to the company.

“Whether it be shopping for and delivering food and sundries to the local food pantry or helping to expand the agricultural program at the local school,” De Motta says she’s “truly excited to be part of the Hū Honua ‘ohana” and able to serve the community through her work.

Roberta and her husband Wesley De Motta, Hū Honua’s Grounds Manager, reside in Pepe‘eko with their two children.

Being part of this coastline community stretches back generations for both Roberta and Wes; both of their parents worked in Pepe‘ekeo’s sugar industry.  “To bear witness of the construction and refurbishment of the plant [sugar mill], and then to be here when it all starts up will be amazing.  My family will continue to be part of this community’s story as the sugar mill is converted to a renewable energy facility that benefits the island.”

Something is a little fishy

Tim Formaz, Project Manager at Hū Honua, donated 110 tilapia to Kalaniana‘ole Elementary & Intermediate School to assist with the school’s agriculture program.  Hū Honua supplemented the donation with care infrastructure including a 650-gallon fish tank, circulation pump and fish food.

Teachers have started crafting ways to integrate first-hand hydroponics learning experiences into their lesson plans.

Waiākea High School Boy’s Soccer Team Makes it to the State Championship Tournament

Hū Honua made a donation to the Waiākea High School Boy’s Soccer team to compete in the State Championship Tournament on O‘ahu.

The trip included senior night, where graduating team members were recognized and celebrated.

Food Basket Donation

The Hāmākua Coast Assembly of God in Pepe‘ekeo, the only food distribution organization in the area, recently encountered a lack of funding and supplies, forcing their campaign to operate on a per case basis.

In early March, Hū Honua donated much needed supplies to the Assembly, including basic home products, canned goods and nonperishable food items, helping to ease the demand for essentials by the area’s struggling families.

Family Focus

For the second year, Hū Honua partnered with Kalaniana‘ole Elementary & Intermediate School for the annual Hilo-Waiākea-Laupāhoehoe DOE Family Focus Team event at Prince Kuhio Plaza in February.  Hū Honua team members Tim Formaz, Wesley De Motta and Roberta De Motta attended the event to assist with showcasing the school’s many achievements.

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Since we received our air permit in September from the Hawaii Department of Health- Clean Air Branch (DOH), Hu Honua Bioenergy LLC (HHB) has moved forward with Pepeekeo site preparation.

“We are pleased that the DOH has granted us the air permit,” said John Sylvia, CEO of HHB. “The Hawaii air permit process is quite rigorous and it is important for all stakeholders that it was done correctly. We look forward to contributing to Hawaii’s energy sustainability while providing economic benefits for the community.”

During operation of the 24 MW power plant we plan to use locally collected and grown biomass material and non-mulchable wood chips that might otherwise end up in the landfill.

Air permit process

Hu Honua first applied for an air permit two years ago. Following extensive air emissions modeling and engineering analysis conducted by outside experts retained by HHB, which responded to DOH questions and information requests; a year later the DOH issued a draft permit and opened a public comment period. DOH held a public hearing in September 2010.

Based on the feedback from the public hearing and the public comments, Hu Honua revised and resubmitted its application in December 2010.

After further public comments, DOH and Hu Honua made additional modifications to the draft air permit which was reviewed by both DOH and the US Environmental Protection Agency.

Hu Honua pre-construction activities

Site grounds have been cleared of over-growth. HHB has decommissioned old equipment from the site including the coal handling equipment from the days when the facility burned coal. Other materials we’ve removed are the fuel feeding system, barrels of oil and solvents, and combustion air system. We have also begun designing our layout, engineering and our work plan.

We have contracted licensed professionals for the removal and disposal of hazardous materials. Recycling for metal was used when possible.

New site manager hired

HHB has retained Tim Formaz as Owner’s Engineer and Site Manager. Formaz has considerable experience in the energy industry and has recently served at President Turbine Power Inc. and HRSG International as a mechanical engineer. Formaz, a mechanical engineer, brings more than 30 years of energy experience. Formaz has worked on international and domestic utility projects including a 24 megawatt biomass facility on Kauai.

Archeology report shows industrial relevance

Pacific Consulting Services of Honolulu was commissioned to conduct an archeology report of the plant site. The report reviews past site conditions and historical uses of the area.

Hawaii’s early economy relied heavily on the sugar industry after the demise of whaling and sandalwood trade. The area was heavily utilized for its ability to grow sugar and create electricity. For well over a hundred years, the area was in industrial use, including operating the facility as a coal powered plant.

Community Outreach

Hu Honua Sponsors Boys & Girls Club of the Big Island Golf Tournament:

Hu Honua was a Gold sponsor at the Boys & Girls Club of the Big Island’s 5th annual Golf Tournament at the Volcano Golf Course.

Proceeds from the event went to benefit the club, and subsidize fees and operation costs for members.

Mahalo to the Boys & Girls Club of the Big Island for inviting us to support your tournament; congratulations to committee co-chairs Russell Chin and Warren Lee, and steering committee members Newton Chu, Barbara Hastings, Chad Hasegawa, Russell Hayashi, Jay Ignacio, Rhea Lee, Kiyoko Ota, Gerald Takase, Bill Walter, Harry Yada, Wayne and Agnes Yamauchi for putting on this event.

Rural South Hilo Rascals:

The Rural South Hilo Rascals did well this past season, both T-Ball and Coach Pitch teams won over 30% of their games. The team focused on motivation and sportsmanship.

Congratulations to the team manager Marvin Ugalde, T-Ball coaches: Moke Ugalde, Chad Lerma and Coach Pitch Coaches: Craig Miyashiro, TJ Publico, Kevin Matsunami and Sean Cambe for all of your hard work and dedication. Your value instilling commitment to the game, and compassion for working with children will stick with our Rascals forever.

HHB is happy to support the team and coaches for their sportsmanship. Go team!

Hakalau Beach Clean Up:

HHB team members participated in a Hakalau Beach clean up. The team worked with the Hawaii County Parks and Recreation, and Hawaii Electric Light Company to cut out left over metal from the Hakalau Mill. The park is now one step closer to being a safer place for keiki to enjoy.

Did You Know?

Hawaii Island residents are paying more than 40 cents per kilowatt hour and the average is generally running over 35 cents. Privately funded Hu Honua is one of the ways to help bring the costs of electricity down.

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“We are pleased that the DOH has granted us the air permit,” says John Sylvia, CEO of Hu Honua. “The Hawai‘i air permit process is quite rigorous, and it is important for all stakeholders that it was done correctly. We look forward to contributing to Hawai‘i’s  energy sustainability while providing economic benefits for the community”.

Click here to view the latest press release.

Click here to view the press release issued by the Hawai‘i State Department of Health–Clean Air Branch

The HHB energy facility will utilize locally collected and grown biomass material and non-mulchable wood chips that might otherwise end up in the landfill.

“We are pleased that the DOH has granted us the air permit,” says John Sylvia, CEO of Hu Honua.  “The Hawai‘i air permit process is quite rigorous, and it is important for all stakeholders that it was done correctly. We look forward to contributing to Hawai‘i’s  energy sustainability while providing economic benefits for the community”.

Besides the construction jobs (estimated at nearly 80 for a year), HHB anticipates there will be 40 full-time plant jobs and about 130 indirect jobs in the timber industry and other support services for the operation.

The proposed 24-megawatt renewable energy facility will produce up to 10 percent of Hawai‘i Island’s electricity needs, enough to power 14,000 homes and offset a substantial amount of imported oil per year.

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Hu Honua is working with the Hawaii Department of Health, Clean Air Branch  (DOH) to finalize language of the air permit to address comments and recommendations from EPA to DOH regarding procedures and processes associated with emissions monitoring. Hu Honua will be the first of its kind of facility to be located in Hawaii and the standards governing this type of operation have been recently updated.

Hu Honua has affirmed it will meet all of these updated standards, including the latest and most stringent applicable emissions regulations that have recently been implemented—maximum achievable control technology (MACT.)  Furthermore, Hu Honua’s engineering and construction contractor has provided a guaranty that the facility will meet the limits contained in its air permit application.

John Sylvia, CEO of Hu Honua, was clear that the facility is being designed to meet all the requirements. “The last thing we want is a facility which doesn’t meet its permit requirements,” he said.

Air permit timeline

Hu Honua first applied for an air permit two years ago.  Following extensive air emissions modeling and engineering analysis conducted by outside experts retained by Hu Honua, during which period numerous DoH questions and information requests were addressed, a year later the DOH issued a draft permit and opened a public comment period that exceeded a month. DOH held a public hearing in September 2010 and extended the public comment period to nearly two months.

Based on the feedback from the public hearing and the public comments, Hu Honua revised and resubmitted its application in December 2010.  DOH opened a second public comment period, which lasted about a month.

After further public comments, DOH and Hu Honua implemented additional modifications to the draft air permit in response to public comments.  DOH sent the proposed air permit to EPA for review in May 2011.

EPA responded at the end of June, saying it had no objection to the proposed air permit being issued.

The need

As the state faces rising oil costs and a mandate to meet the Hawaii Clean Energy Initiative goals for renewables, Hu Honua’s biomass facility will be a significant contributor—24 megawatts of electricity for the Big Island grid, about 10 percent of the island’s demand. This will allow the utility to reduce the amount of power it produces from fossil fuels.

Hu Honua will also be a stable power source, not intermittent like wind.  That means the utility can rely on its steady output and plan accordingly.

The facility will also bring jobs to an area that sorely needs them.  During the rebuilding phase of the facility, approximately 100 construction jobs are anticipated. Once it is operating, approximately 30 fulltime, good paying jobs will be created at the facility. Another 120 indirect jobs are estimated in the timber and related industries as well.

Hu Honua is confident that it can meet all air quality standards required by DOH and EPA.

County’s Windward Planning Commission approves SMA permit amendment

HILO, HI—May 9, 2011—Hawaii Third Circuit Court Judge Greg K. Nakamura has removed Hu Honua Bioenergy LLC as a defendant in the lawsuit filed by certain area residents against Continental Pacific, LLC and Hank Correa Realty.

The judge ruled that Hu Honua had produced sufficient evidence to show that no other defendant had legal claim to bring an injunction against Hu Honua to block using the Pepe‘ekeo site as a power plant.

The judge’s ruling was one of two milestones for Hu Honua. The County’s Windward Planning Commission ruled 4-0 last Wednesday to grant an amendment to the plant’s Special Management Area permit that allows it to convert the old coal plant to more sustainable biomass.

Attorney Gary Grimmer, who represented Hu Honua in the Dow vs Continental case, said that Hu Honua was pleased with Judge Nakamura’s ruling because Hu Honua is not affiliated with Continental Pacific and had nothing to do with the plaintiffs’ purchase of their Pepe‘ekeo land.

“The ruling is a step toward ultimately opening the biomass plant and helping reduce the Big Island’s dependence on fossil fuel to generate electricity,” Grimmer said.

Hu Honua plans a 24-megawatt, biomass-fueled power facility at the old sugar mill power station. The operation will provide baseload electric power, that is, a stable source of generation as opposed to other, more fluctuating alternate sources. It can provide about 10 percent of the island’s electrical needs.

The judge’s order granting Hu Honua summary judgment was filed last week.

The suit was originally filed on May 5, 2010. Since then a series of hearings were held and legal submissions were made. As a result, Judge Nakamura dismissed the claims of two of the plaintiffs, Raquel Dow and Roberta St. Ambrogio. There are two plaintiffs’ claims still pending.

The plaintiffs claimed that they bought the land near the Pepe‘ekeo power plant in reliance on promises or misrepresentations by Continental and Correa that the power plant would close and not reopen. Plaintiffs’ seek damages from Continental and Correa and, until Nakamura ruled to remove Hu Honua, sought an injunction against Hu Honua from reopening the power plant as a biomass fueled facility. Judge Nakamura ruled that Dow and St. Ambrogio had no evidence of the alleged promises or misrepresentations.

The SMA permit requires a set of provisions. Hu Honua’s president, Rick McQuain assured the Commission all of them will be met fully. The Commission’s decision comes after more than a year of hearings and submissions including substantial testimony in support from the community, laborers, businesses and elected officials.

Among the provisions are that the refurbishment of the plant from the existing coal operation to a biomass facility be completed within five years; compliance with all federal, state and county regulations on air, water quality and discharge, and noise; sound levels at the plant boundary are to be kept within residential levels of 55 decibels; biomass truck traffic to and from the plant should be restricted to 6 a.m. to 6 p.m. and no “jake brakes” be used on Sugar Mill Road.

There are also provisions for construction dust, runoff, drainage, solid waste management and proper handling of archeological or historical artifacts if found.

Hu Honua Bioenergy LLC is converting the former Hilo Coast Power Company plant at Pepe‘ekeo into a modern biomass energy facility. After sugar operations ceased, the facility operated for some years as a coal-fired power plant. Hu Honua will use only biomass. The goal is for the facility to be operational by late 2012. The 24-megawatt (MW) facility will produce a net of a little more than 21 MW of power, about 10 percent of the island’s electrical needs and about enough for 14,000 homes.

The facility expects to employ about 100 construction workers for up to a year for plant refurbishment and then 30 fulltime workers for site operations.

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Hawaii Third Circuit Court Judge Greg K. Nakamura has removed Hu Honua Bioenergy, LLC as a defendant in the lawsuit filed by area residents against Continental Pacific, LLC and Hank Correa Realty.

The judge ruled that Hu Honua had produced sufficient  evidence to show that no other defendant had legal claim to bring an injunction against Hu Honua to block using the Pepeekeo site as a power plant.

For more information, click here…

SMA permit amendment approved

The County Windward Planning Commission voted 4-0 on May 4 to approve Hu Honua’s amendment request. The Commission set a list of provisions which Hu Honua president Rick McQuain says can be fully and completely met by the company.

The Commission’s decision comes after more than a year of hearings and submissions including substantial testimony in support from the community, laborers, businesses and elected officials.

Among the provisions are that the refurbishment of the plant from the existing coal operation to a biomass facility be completed within five years; compliance with all federal, state and county regulations on air, water quality and discharge, and noise; sound levels at the plant boundary at to be kept within residential levels of 55 decibels; biomass truck traffic to and from the plant should be restricted to 6 a.m. to 6 p.m. and no “jake brakes” be used on Sugar Mill Road.

There are also provisions for construction dust, runoff, drainage, solid waste management and proper handling of archeological or historical artifacts if found.

Archeology survey being reviewed by SHPD

The State Historic Preservation Division of the Department of Land and Natural Resources is reviewing the archeology inventory and study that was conducted for Hu Honua by Pacific Consulting Services, Inc. of Honolulu. We are awaiting SHPD’s comments.

In the report the consultants found:

“The historical research conducted for this AIS has revealed an approximate 150-year history of the Pepeekeo Sugar Mill complex that included periodic expansions of the mill and almost continuous upgrades since the late-1800s …”

We’re part of our community

Recently, Hu Honua has donated to various organizations. The company is sponsoring the Rascals Rural South Hilo little league baseball team through a donation of $1,000. The team plans to use the funds to purchase baseball equipment, team uniforms, and to subsidize entrance fees.

“This makes it possible to continue our sports activities despite the economic distress we are having. Community activities in our rural areas will help our children gain positive attitudes; achieve their goals in life along with respect. We need to remember that our children are our future,” said Marvin Ugalde, president of the Rascals Rural South Hilo.

Hu Honua has given financial sponsorship of $2,000 to the American Young Soccer Organization (AYSO). It is also a corporate sponsor for Kalanianaole Elementary and Middle school, and plans to be present at the year-end Ho’olau’le’a.

Hu Honua Bioenergy is also proud new member of the Japanese Chamber of Commerce & Industry of Hawaii, and has applied for membership in the Hawaii Island Chamber of Commerce.

We’re also supporting the Business-Education Partnership program, through hole sponsorship in its annual golf tournament.

Company team members have taken a personal commitment to helping our community. For several years, we’ve participated in “Walk a mile in her shoes” a charity event that is an international men’s march to stop rape, sexual assault and gender violence against women. This photo at left is from a previous year, Charlie Toguchi, our government liaison, Wes DeMotta, site supervisor, and Rick McQuain, president.

Sherrie Thomas of Hu Honua’s Honolulu office has also donated to and participated in the Hawaii Island United Way’s 9th annual luck of the Irish golf tournament.

Did you know?

Hu Honua Bioenergy will produce baseload power for Hawaii Electric Light Company. That means that it’s steady and reliable, which allows HELCO to add more intermittent alternatives, such as wind, to the grid.

The approval comes after a year of hearings, written submissions and a hearing officer’s recommendations.  There are a set of conditions, many recommended by the Planning Department and the hearing officer.  Once we confirm the conditions included in the permit from the Commission, we will upload them to the Hu Honua website.  Mahalo to the Commission for its careful review and approval.

Circuit Court Summary Judgment: Honorable Greg Nakamura of the 3rd Circuit Court granted Hu Honua’s motion for a summary judgment in the case Dow vs. Continental Pacific LLC (Civil No. 10-1-0140). That removes Hu Honua as a defendant in a case brought by area residents.  Hu Honua was represented in the proceedings by Gary G. Grimmer & Associates of Honolulu.

The judge ruled that Hu Honua had produced sufficient evidence to show that no other defendant had legal claim to bring an injunction against Hu Honua to block using the Pepeekeo site as a power plant.

For more information, click here…

HILO, HI—March 22, 2011—The Hawaii County-appointed hearings officer in the Hu Honua Bioenergy contested case recommended that the County Windward Planning Commission approve the proposed amendment to the facility’s Special Management Area.

The hearing officer, Robert Crudele, said the approval should be based on a set of provisions. Hu Honua management said those requirements will be fully met.

Among the provisions are that the refurbishment of the plant from the existing coal operation to a biomass facility be completed within five years; compliance with all federal, state and county regulations on air, water quality and discharge, and noise; sound levels at the plant boundary at to be kept within residential levels of 55 decibels; biomass truck traffic to and from the plant should be restricted to 6 a.m. to 6 p.m. and no “jake brakes” be used on Sugar Mill Road.

There are also provisions for construction dust, runoff, drainage, solid waste management and proper handling of archeological or historical artifacts if found.

In all there are 16 provisions.  A copy of the full 31-page report is available on the Hu Honua Bioenergy website at www.huhonua.com.

The Windward Planning Commission will consider the hearing officer’s recommendations and the permit amendment on April 7^th at its regular meeting.

“We are grateful that the hearing officer’s recommendations parallel those the County Planning Department had outlined.  We have already agreed we can mitigate any concerns listed and meet all requirements,” said Rick McQuain, president of Hu Honua.

A recently released traffic study by SSFM International, Inc. determined that traffic will not be adversely effected by the Hu Honua project, and the County police department had reported it doesn’t anticipate traffic or other public safety concerns. This report is also available at www.huhonua.com .

Hu Honua is committed to its share of maintenance of Sugar Mill Road and has set funds aside in an escrow account while it resolves whom the proper entity is to receive the funds and how much its share is.

Hu Honua Bioenergy LLC is converting the former Hilo Coast Power Company plant at Pepeekeo into a modern biomass energy facility. After sugar operations ceased, the facility operated for some years as a coal-fired power plant.  Hu Honua will use only biomass. The goal is for the plant to be operational by late 2012.  It will produce 24 megawatts of power, about 10 percent of the island’s electrical needs and about enough for 14,000 homes.

It expects to employ about 100 construction workers for up to a year for plant refurbishment and then about 30 fulltime workers at the facility.

Download the hearing officer’s full report here: Crudele SMA Recommendations