The Hawaii Natural Energy Institute was established in 1974, a few months after an oil embargo by the OPEC oil cartel triggered economic and political chaos in the United States and the rest of the industrialized world. Countries that depended on imported petroleum were suddenly hostage to the oil producers, and weakened economically by the inflation caused by the rise in oil prices.

In the midst of the oil embargo, the 1974 Legislature quickly acted to create a structure within the state government which would oversee Hawaii's attempts to wean itself from imported oil. It consisted of three parts:

• the Hawaii Natural Energy Institute of the University of Hawaii;
   
• the State Program for Energy Planning and Conservation, eventually to become the Energy Resources and Technology Division of the Department of Business, Economic Development & Tourism, to oversee planning and conservation; and
   
• the Natural Energy Laboratory of Hawaii to serve as a field laboratory for energy research and development.

HNEI

The measure establishing HNEI was signed into law by Governor George R. Ariyoshi on June 14, 1974, as Act 235. The goals set forth by the Legislature, looking from a perspective 25 years later, were far-sighted:

The current energy crisis is caused by a global energy shortage which will worsen through the remainder of this decade and may continue to the end of this century. The state of Hawaii, with its total dependence for energy on imported fossil fuel, is particularly vulnerable to dislocations in the global energy market. This is an anomalous situation, as there are few places in the world so generously endowed with natural energy: geothermal, solar radiation, ocean temperature differential, wind, waves, currents—all potential non-polluting power sources. The purpose of this act is to establish the Hawaii Natural Energy Institute that will coordinate and undertake the development of non-polluting natural energy sources for Hawaii .... [The institute] will provide the needed visibility, focus, and encouragement for energy-related activities directed toward converting Hawaii's natural resources into viable energy systems. These alternative energy systems will:

(1) diminish Hawaii's total dependence on imported fossil fuels;
(2) meet the state's increasing energy demands with little or no environmental degradation; and
(3) contribute to the technology base for finding solutions to the national and global energy shortage.

The Early Years

While research on alternative forms of energy was not new to Hawaii, the oil embargo served as a catalyst for the expansion of this field. UH researchers had conducted isolated studies of geothermal, ocean, and biomass energy during the 1960s and 1970s, based in part on the interests of the individual researchers, as well as on an underlying belief in the wisdom of replacing finite fossil fuels with other renewable resources. The creation of HNEI gave new direction to their work.

Planning

HNEI began its work in mid-1974 under the leadership of John Shupe, who also served as dean of the UH College of Engineering. One of HNEI's first tasks was supporting the Governor's Committee on Alternate Energy Resources, which had been charged with assessing energy resources and making recommendations on the research and funding required for their development.

The committee considered solid waste, biomass, hydroelectric, wind, geothermal, solar, ocean thermal, wave, coal, and nuclear. Wind, geothermal, and ocean thermal came with the highest recommendations for state research and development support, followed by biomass, hydroelectric, and solar. With the exception of nuclear power, which was not recommended by the group, all of these alternatives, even coal, eventually came to be used in Hawaii, with varying degrees of success.

The committee's recommendations were submitted to the 1975 Legislature, which responded by providing $1.9 million for the fiscal biennium for energy research and development. Much of the push for this legislation came from Senator T.C. Yim, then chairman of the Committee on Energy and Natural Resources.

HNEI's Missions

Hawaii's energy planning led to two roles for HNEI. The first was resource assessment and monitoring to determine which resources could best meet the state's energy goals. The second was the coordination of research and development among those pursuing similar goals.

In the years that immediately followed, HNEI served in that coordinating capacity, providing seed funding to UH researchers and others for various projects. The bulk of the funding came from the U.S. Department of Energy and Hawaii state government, and reflected the then- national priority of generating electricity from indigenous sources, such as solar, geothermal, wind, ocean thermal, and biomass. The early accomplishments of the institute reflected that goal.

Beginning in the mid-1970s, and even continuing through the 1990s, HNEI spearheaded the Hawaii Geothermal Project, a university-wide effort to explore and utilize this resource. HNEI joined the UH Department of Meteorology to coordinate wind surveys of the Hawaiian archipelago and develop the base data for the subsequent location of wind turbines. The institute also established the Kahua Wind Energy Storage Test Facility to conduct wind storage and energy research. Surveys of solar insolation were conducted under the institute's direction, while researchers field-tested solar devices and systems for their dependability in generating electricity.

Agricultural experts and researchers evaluated the best species of crops, growing and harvesting techniques, and cultivation sites statewide as the basis for a biomass energy industry. Work was also conducted on biomass-derived alcohol fuels for transportation applications. HNEI launched ocean thermal energy conversion development projects, including studies on the components of these systems and the effects of marine corrosion.

Researchers in the materials program tested the use of thin films for application in the photoelectrochemical production of hydrogen, new alloys that could withstand the corrosive marine environment, and other materials for energy and ocean-related applications.

Changing Priorities

By the time of the institute's tenth anniversary in 1984, much of its research was being applied, or near application, in the commercial production of electricity: The geothermal pilot plant in Puna had proven the commercial potential of geothermal power, wind farms were operating throughout the islands, Hawaii had the highest per capita usage of solar water-heating systems in the nation, and biomass plantations were being established.

HNEI refined its research focus to initiate efforts in biofuels, ocean resources, materials applications, and various interdisciplinary programs, while continuing its emphasis on energy-related research and development, particularly hydrogen.

HNEI pioneered the resurgence of research on hydrogen from renewable resources. Funded by the U.S. Department of Energy, the program is developing technologies for the production and storage of this promising "fuel of the future." The program, which has become HNEI's largest, has consistently rated at the top among comparable efforts nationwide.

HNEI has also continued its biomass research, primarily in the gasification of biomass into fuels, chemicals, and other products.

The institute's umbrella Center for Ocean Resource Technology was the home for the Marine Minerals Technology Center, the U.S. Department of the Interior’s national center for seabed minerals research, until mid-1999 when federal support ended. The MMTC was charged with identifying the locations of seabed mineral deposits and developing tools and techniques to extract the valuable ores from the ocean floor. That information awaits a resumption of federal interest in seabed exploration. However, newly formed international partnerships are being formed to explore the potential of methane hydrates, ice-encrusted concentrations of methane found on the deep ocean floor.

HNEI also continues to conduct other marine-related research and development, including the sequestration of greenhouse gases in the deep sea, open-ocean fish farming, floating platforms, artificial upwelling of deep ocean water, and other offshoots of its early OTEC work. The greenhouse gas work has attracted federal and international interest and funding support, while HNEI researchers are cementing relationships with counterparts in Japan and elsewhere on floating platform development.

Coordinating Resources

• The Hawaii Natural Energy Institute's initial mandate was as a coordinator of research, and it has preserved that role throughout its history. HNEI has worked closely in coordinating research and development interests and played an important catalytic role in bridging university research with many organizations:
   
• Hawaii Department of Business, Economic Development & Tourism on activities ranging from studies on the social costs of energy use to the development of renewable energy field laboratories;
   
• national laboratories, such as the National Renewable Energy Laboratory and Brookhaven, Sandia, and Argonne National Laboratories on joint research projects;
   
• University of Hawaii's Office of Technology Transfer and Economic Development and the Pacific International Center for High Technology Research on transferring university-based research discoveries to the private sector;
   
• industry partners, such as Hawaiian Electric and other sponsors in specific fields; and
   
• various institutions and organizations from throughout the world, such as the University of Tokyo’s Agriculture and Technology Institute and the energy agencies of Thailand, the Philippines, Korea, and the People’s Republic of China.

HNEI's research has involved faculty representing many UH colleges and departments, researchers from numerous U.S. and foreign universities, and post-doctoral, graduate, and undergraduate students from the University of Hawaii and other major schools. These alliances and partnerships have enabled HNEI to benefit from innovative research being conducted elsewhere and apply this knowledge to Hawaii's efforts, while allowing others to learn from the institute's work.

HNEI in the New Millennium

Section 304A-1891 passed by the Hawai‘i State Legislature in 2007 established the Hawai‘i Natural Energy Institute (HNEI) in statute, defined duties of the director and institute, and required an annual report to the legislature on its activities, expenditures, contracts developed, advances in technologies, coordination with state agencies and programs, and recommendations for proposed legislature. A summary of HNEI activities is provided in the following paragraphs. This is the information provided in the Annual Report to the 2009 State of Hawai‘i Legislature, as required by section 304A-1891.

Since 2001, the Hawai‘i Natural Energy Institute (HNEI) has experienced significant growth in its extramural funding from under $2 million per year to over $5 million per year. HNEI is a nationally acknowledged leader in research activities in areas such as hydrogen, fuel cells, biofuels and ocean resources. More recently HNEI has undertaken a pivotal role within the State, consistent with its mandate from the legislature to reduce dependence on fossil fuels while contributing to the development of advanced energy technologies and systems aimed at finding solutions to energy shortage problems. While continuing efforts directed toward development of renewable energy and ocean resource technologies, HNEI has also implemented several major public/private partnerships to deploy and demonstrate renewable energy systems to meet Hawai‘i’s energy needs. HNEI has also initiated two major efforts directed toward solving the technical issues associated with very high penetration of renewable energy technologies onto the grid. Although funded outside the Hawai‘i Clean Energy Initiative (HCEI), these efforts do provide substantial support to the HCEI goals and programs.

A very brief synopsis of select HNEI activities follows:

Hawai‘i Distributed Energy Resource Technologies for Energy Security: This program, managed by HNEI and conducted in partnership with GE Global Research, HECO, MECO and HELCO, addresses technical issues associated with increased penetration of intermittent renewable and distributed energy technologies in the electrical grid. Analytic models developed under this program are being used to identify near-term energy-transforming projects for implementation. To date, models have been developed and validated for the Big Island and for Maui. Scenarios for modification of the Big Island energy system have been analyzed using these models and results have been presented to the U.S. Department of Energy (USDOE) and the utilities. Ongoing efforts include development of models for Oahu and Kauai, and additional scenario evaluation. This program also includes the deployment and testing of emerging distributed energy technologies.

Hawai‘i Hydrogen Power Park: With funding from USDOE and from the state's Hydrogen Capital Investment Special Fund through DBEDT, HNEI is the implementing partner for the installation of a hydrogen fueling station on the Big Island at Hawai‘i Volcanoes National Park (HAVO). HNEI has worked with HAVO to secure separate funding from the U.S. Department of Transportation to develop hydrogen-fueled plug-in hybrid electric vehicle (PHEV) shuttle buses for use at the park. USDOE is also providing an IC-engine-powered hydrogen vehicle. Current funding, approximately $3.3 million, is expected to be sufficient for installation of the fueling station, development of two PHEV shuttles, and 3 years of operation for all 3 shuttle buses.

Maui Smart Grid: This newly awarded, competitively-won project was received by HNEI on October 1st, 2008. Our partners include General Electric, MECO, HECO, and First Wind, among others. This is a 4-year, $14 million project designed to demonstrate reduction of peak electricity demand by at least 15% through the use of advanced smart grid and demand-side-management technologies. Additionally, the project is intended to assist MECO to provide reliable and stable electricity with increased percentages of as-available renewable resources. This project was formally started October 17, 2008.

Energy Analysis for Renewable Portfolio Standards: As called for by ACT 95, passed by the 2004 Hawai‘i State Legislature, HNEI, under contract to the Hawai‘i Public Utilities Commission (PUC) is providing technical evaluations to the PUC to assess the current renewable portfolio standards. HNEI produced a draft final report providing the analysis of the state utilities’ ability to meet the 2010 Renewable Portfolio Standard goal of 10%. The PUC was briefed on this report in September 2008 and the draft final report submitted to the PUC in October 2008. HNEI is scheduled to provide information to the PUC by the end of the year for determining how additional efforts can be made to enhance renewable portfolio standards.

Hawai‘i Energy and Environmental Technology Initiative (HEET): This program, funded by the Office of Naval Research (ONR), is focused on the development and testing of fuel cells and seabed methane hydrates. A key activity under HEET was the development of the Hawai‘i Fuel Cell Test Facility (HFCTF) located on HECO property on Cooke Street. In addition to ONR, additional funding is provided by the USDOE, National Renewable Energy Laboratory, Arkema Inc., United Technologies Corporation, and Defense Advanced Research Projects Agency. Work at the HFCTF includes substantial efforts to characterize effects of contaminants in hydrogen fuels, with the ultimate objective to assist in development of hydrogen fuels standards to accelerate acceptance of fuel cells.

Hawai‘i National Marine Renewable Energy Center: In October 2008, in response to a competitively-submitted bid, HNEI was selected by the USDOE to establish one of two National Marine Renewable Energy Centers. This award will provide approximately $1 million per year for up to five years to conduct renewable energy R&D of technologies that harness the power of waves and ocean thermal energy conversion. The local utilities and industrial partners are expected to provide an additional $1 million per year of in-kind cost sharing.

Solar Initiatives: HNEI is the primary subcontractor to MVSystems, a mainland solar energy company, for development of technology for the solar production of hydrogen. HNEI has critical patents in this field and is currently negotiating with industry for licensing and further development. HNEI is also providing technical support, data acquisition, and analysis services to the Hawai‘i Department of Education for the installation of $5 million in solar systems on selected schools. HNEI is also working with USDOE and ONR to conduct additional resource assessments and testing of emerging solar technologies.

The Flash Carbonization™ process: Within its technology development efforts, HNEI has developed a patented process for the rapid and efficient production of charcoal from biomass. Charcoal is a renewable replacement for coal, which is burned in Hawai‘i for power generation and is the biggest contributor to global warming. To assist licensees of our patents, HNEI is now seeking permits to enable the commercial operation of the technology in Hawai‘i.

Algal Bio-Oils for Biodiesel Production: Under its technology development efforts, HNEI is working with various industry partners to contribute to the development of technology for the biological production of oils. HNEI efforts focus on the production of biodiesel from waste streams and downstream separation processes which will be essential for cost-effective production of algal oils.

HNEI in the Future

It would be difficult to guess where the Hawai‘i Natural Energy Institute will be on its 50th anniversary or beyond. Despite the changes that time will certainly bring, those who have been associated with the Hawai‘i Natural Energy Institute over its history have proved to be remarkably prescient in gauging the nation's future energy resource needs, setting realistic goals, and taking the steps to achieve them. HNEI has an impressive record of achievement in fulfilling its original mandate. The institute's current initiatives will be joined or superseded by new ones in the coming years as the world changes and brings new challenges. The Hawai‘i Natural Energy Institute, with a solid foundation of ideas, creativity, and expertise established and nurtured over more than a quarter-century, stands ready to meet those challenges.