Geothermal Energy for Hawaii: a Prospectus

LEGAL NOTICE This book was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Govern- ment nor any agency thereof, nor any of their employees, makes any warranty, express or im- plied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favor- ing by the United States Government or any agency thereof. The views and opinions of authors ex- pressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. FOREWORD It is critical to the well-being of present and future generations in Hawaii that our Islands gain greater energy self-sufficiency, primarily through the orderly, well-planned development of alternate energy resources. One of Hawaii's major alternate energy resources is geothermal energy. In the summer of 1981, Hawaii became the second State in the United States with on- line electric power generated from geothermal steam. The development of our first geothermal power plant on the Island of Hawaii has attracted worldwide interest. Our Federal Government's Department of Energy contributed much to this project and related work. One of its contributions was the preparation, by specialists with the Lawrence Berkeley Laboratory of the University of California, of this new volume, Geothermal Energy for Hawaii: A Prospectus. It is the story of geothermal power in our Islands. Because of its value, and the information it contains, our State Department of Planning and Economic Development is publishing it in this form. Other, more technical, volumes are available for specialists. Through such publications, our people are kept informed of the progress they make possible through their cooperation, their taxes, and their participation in the projects their governments carry out. We are grateful to all who have made this useful document available, and to all who have contributed to Hawaii's progress toward greater energy self- sufficiency. INTRODUCTION The key to Hawaii's successful development of alternate energy resources is not found primarily in money, although this is essential; it is not found in new technology, although this is sometimes critical; it is not found in the abundance of the basic resources themselves. Rather, the key to success is found in the cooperation of individuals who work in harmony toward a desired goal. Without such harmonious kokua—the Hawaiian word for helpful, sincere cooperation—Hawaii would have no chance for success in lessening its dependence on imported petroleum for its energy needs. The work of developing Hawaii's geothermal resources, and the successful completion of the State's first geothermal power plant in the Puna District of the Island of Hawaii, are prime examples of kokua. The Federal, State and County Governments and their agencies joined with the private sector and the people of the Big Island to achieve various objectives. This cooperation continues. It is indeed a wonderful example for others seeking to attain difficult goals. This new volume, a handy resource booklet for all interested in Hawaii's geothermal power, progress and potentials, is only one of a number of practical examples of how our U.S. Department of Energy has helped the people of Hawaii achieve their goals. We look forward to a continuation of this profitable partnership. Economic Development and State Energy Resources Coordinator PREFACE Most experts agree that development of geothermal energy in Hawaii is less a technical and economic question than a social one in part, this is because of a geographic and cultural environment which makes the state more sensitive to technological change than the mainland united States. The impact of geothermal development will be more quickly experienced throughout the islands because of the. smaller-economy, the limited land area, the complex cultural setting, and the need to create new institutions with which to manage the development process. An increasing number of developers, private citizens, engineering and planning consultants, and government officials are now becoming involved in various aspects of geothermal development. Each time a new person becomes involved, basic questions about geothermal energy and its potential uses must be answered before the person is able to make an intelli- gent contribution to the decision-making process. At present, such information is available only through technical reports and occasional newspaper and magazine articles. This document is intended to provide an overview of geothermal development to potential contributors and participants in the process: developers, the financial community, consultants, government officials, and the people of Hawaii The goal of the document is to describe the issues, programs, and initiatives that have been examined to date and, to show that geothermal energy is a realistic option in Hawaii's future. ACKNOWLEDGMENT The authors would like to express their appreciation to members of the geothermal community in Hawaii for their hospitality and assistance. This document could not have been possible without the help of the staff and consultants at the Department of Planning and Economic Development, the Hawaii Institute of Geophysics, the Hawaii Natural Energy Institute, the HGP-A Wellhead Generator Demonstration Project, and members of the faculty of the University of Hawaii at both the Manoa and Hilo campuses. We would also like to thank representatives of the County of Hawaii government and the Puna Hui Ohana for their generous cooperation. And :the support and guidance of the Hawaii Geothermal Advisory Committee and the U.S. Department of Energy is gratefully acknowledged. Finally, we would like to record our indebtedness to our LBL colleagues in the Hawaii Integrated Energy Assessment Project who generously shared their insights on energy issues and alternatives. We are also grateful to David M. Chambers, Jon F. Elliott, and Stephen P. Vonderhaar for their comments and contributions, and to Sharon Strocchia for her production assistance. TABLE OF CONTENTS 1. ENERGY AND HAWAII 1 2. WHAT IS GEOTHERMAL ENERGY? 7 3. HOW CAN GEOTHERMAL ENERGY BE USED? 13 4. GEOTHERMAL PROJECTS IN HAWAII 27 5. BALANCING THE BENEFITS AND COSTS OF GEOTHERMAL DEVELOPMENT 35 6. MAKING GEOTHERMAL POWER A REALITY 45 APPENDICES A. GLOSSARY OF TECHNICAL TERMS 57 B. LEGISLATION AND REGULATIONS APPLICABLE TO GEOTHERMAL DEVELOPMENT 69 C. THE GEOTHERMAL COMMUNITY: A DIRECTORY 75 D. AN ANNOTATED BIBLIOGRAPHY 83 LIST OF ILLUSTRATIONS 1. State of Hawaii Oil Imports 2. County Energy Consumption 3. Electricity Costs 4. Comparison of Alternate Energy Sources 5. A Hydrothermal Reservoir in Hawaii 6. Potential Geothermal Resource Areas 7. Geothermal Development Process 8. "Windows" for Geothermal Electric Power by County 9. HGP-A Geothermal Power Plant 10. Direct Use Applications 11. Potential Markets for Geothermal Power on the Island of Hawaii 12. Proposed Inter-Island Submarine Cable Transmitting Geothermal Power 13. Location of the HGP-A Wellhead Generator Demonstration Project 14. Feasibility Study: Piping Geothermal Fluids to a Sugar Factory at Keaau 15. Sugar Processing and Power Production 16. Use of Geothermal Fluids for Fuel Drying 17. Use of Geothermal Fluids for Sugar Processing and Gasohol Production 18. Possible Responses to Public Concerns 19. H2S Abatement at HGP-A 20. Noise Characteristics at HGP-A 21. Dissolved Solids in HGP-A Effluents 22. Potential Environmental Impacts from Geothermal Development 23. Reponsibilities of Federal Agencies in Geothermal Development 24. Energy organization 25. Implications Associated with Different Levels of Geothermal Development 26. Government Actions to Reduce Geothermal Development Uncertainties 27. State Projects to Reduce Geothermal Development Uncertainties 28. Status of Geothermal Projects 1 1. ENERGY AND HAWAII Hawaii is making a one-time transition from fossil to renewable energy resources. At present, the state is almost totally dependant on imports of crude oil and petroleum products and so is vulnerable to disruptions and price fluctuations in the global energy market. In 1980, annual energy imports represented an outflow of about $1 billion from the state's economy. Because of Hawaii's recent volcanic origin and geography, the state has no indigenous fossil fuel reserves and is isolated from systems such as coal and natural gas. Fortunately, Hawaii is rich in renewable energy resources which are becoming available under new and improved technolo- gies. These resources include geothermal, solar, wind, and ocean thermal gradients. Hawaii currently obtains about 92 percent of its energy supply from imported petroleum. Figure 1 depicts the flow of oil imports into the state. Crude oil is shipped to refineries on Oahu from Saudi Arabia, Oman, Indonesia, Malaysia, and Alaska. Refined petroleum products come from California, the Carribbean, and Singapore. The remainder is sup- plied by indigenous energy resources - bagasse from sugar mills (7%) and hydroelectricity (1%). Energy consumption has increased from 78,940 billion Btus in 1963 to 203,940 billion Btus in 1977. Over 82% of the state's energy is con- sumed in the City and County of Honolulu, where the state's population and tourist activities are concentrated. Of the remainder, 7.4% is con- sumed in Hawaii County, 7.0% in Maui County (islands of Maui, Molokai, and Lanai), and 3.3% in Kauai County. A comparison of energy consumption in the various counties is shown in Figure 2. About 20% to 25% of the State's imported fuels are used for electricity generation. Since 1974, the cost of electricity generation has trebled. See Figure 3. Many authorities believe that the price of oil (in 1980 dollars) may be $50 per barrel in 1985 and above $80 in 1990. Hawaii would have serious problems with such prices, even with a guaranteed supply of oil.

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