Jul 5 2010
Ethanol was once slated to play a crucial role in the world of renewable energy, both in Hawaii as well as across the nation. High land costs and permit delays added with the fuel price collapse in the market have put to rest all such hopes, especially in the islands.
In the Hawaiian region, however, the economics work in a different manner while there is a waning of investor enthusiasm as well. The initial roster of six plants envisioned as ethanol producers has been narrowed down now to two.
One of the surviving players in the field, the Pacific West Energy company feels that securing the needed acreage for the purpose of starting production has been one of the biggest obstacles to overcome. In Hawaii, biofuels constitute only a small portion of the renewable power industry, which otherwise has tremendous potential in Hawaii. The islands account for more than one third of all the U.S. installed systems for solar water heating. Work is also underway for remaking the electrical grid of the state for accommodating more energy generated by non-utility, small-scale sources including rooftop photovoltaic arrays.