Local business and community officials celebrated a 2,280-panel solar array at the Natural Energy Laboratory of Hawaii Authority Thursday, saying the project sets an example for others to follow.
Local business and community officials celebrated a 2,280-panel solar array at the Natural Energy Laboratory of Hawaii Authority Thursday, saying the project sets an example for others to follow.
The project sits on 1.3 acres of Cyanotech Corp.’s 90-acre microalgae farm and will produce 1,147,000 kilowatt hours of electricity each year. That’s enough energy to power the entire farm’s production during daylight hours and will reduce Cyanotech’s power costs by one-third, said Jen Johansen, Cyanotech vice president of quality and regulatory affairs.
By using this solar array, Cyanotech, a recognized world leader in microalgae technology, is helping reduce greenhouse gas emissions by 791 metric tons of carbon dioxide annually, which is the equivalent to taking 167 vehicles off the road or 1,839 barrels of oil per year, she added.
A crowd of roughly 50 people gathered at the site for a blessing conducted by kumu Keala Ching, founder of Na Wai Iwi Ola Foundation. Besides asking for blessings and positive energy, Ching chanted like his grandmother told him, carefully choosing words and knowing, “In the word there is life; in the world there is death.” He also performed pi kai — a ritual sprinkling of seawater from the area — on dignitaries.
“I am very excited to be here with you today as we sit on the verge of a global transition off fossil fuel dependence toward a renewable energy economy and our progressive state of Hawaii is leading the way,” said Stephen Gates, Neighborhood Power Co. president. “Every State of the Union address since the Carter administration has stressed the need for this transition, but it is visionary leaders like Cyanotech’s Chief Financial Officer Joel Deal and Chief Science Officer Gerry Cysewski, who made the decision to switch 40 percent of their electricity to onsite solar, that are actually leading the way toward a future filled with renewables.”
In his congratulatory message, Mayor Billy Kenoi applauded Cyanotech, Renewable Services Group and Neighborhood Power for their environmental stewardship in this joint effort to create green energy, as well as wished for continued success. Kenoi and Johansen mentioned how the system was in alignment with Cyanotech’s corporate value of “Malama Aina.”
“Environmental stewardship is a key tenet of Cyanotech’s corporate mission,” said Cysewski, who is also Cyanotech’s executive vice president and co-founder. “We are currently able to keep our carbon footprint down because our microalgae use carbon dioxide. The solar array will further reduce our greenhouse emissions and costs, making it a win-win for our bottom line and the environment.”
This system was made possible because of a partnership between Cyanotech, a nutrition and health products manufacturer, and Neighborhood Power, a Maui-based company committed to “breaking down barriers every day to provide affordable solar energy solutions to everyone.” Cyanotech signed a power purchase agreement with Neighborhood Power, which constructed, owns and operates the solar array.
“As a vertically integrated solar micro utility, it is our commitment at Neighborhood Power to provide solutions that make this transition toward renewables as easy as possible. With innovative finance, progressive engineering, cost-saving installations and optimizing long-term maintenance, Neighborhood Power is breaking down more barriers every year to renewable energy adoption,” Gates said. “For example, our off-balance-sheet solar power purchase agreement enables companies like Cyanotech, utilities and even residential customers to switch to solar with no money down and zero credit. Cyanotech will only begin to pay for solar power 30 days after they have started saving on their electricity bill, and with this program, they will only ever pay a percentage of these guaranteed savings. Currently, Neighborhood Power is selling solar energy to Cyanotech at 55 percent less than their current utility rate.”
The partnership between Cyanotech and Neighborhood Power began in mid-2011, Johansen said. The discussions were facilitated by Tim Wong of the Renewable Services Group and the late Guy Toyama, who was the Friends of NELHA executive director, H2 Technologies Inc. president, and a well-known renewable energy trailblazer in Hawaii. Roughly five years ago, Toyama spearheaded the vision to produce renewable energy at NELHA, which is home to the unique Hawaii Ocean Science Technology Park and serves as a business incubator, research facility and economic development agency. He arranged a meeting at the Gateway Center for NELHA tenants to explore solar energy. There, Cysewski met Wong, who steered Cyanotech toward Neighborhood Power. Wong has served as a facilitator between the two companies and Hawaii Electric Light Co.
“Cyanotech chose Neighborhood Power because of the potential of their technology, and because of the benefits of a purchase power agreement,” Johansen said. “Not having to pay up front for the renewable energy keeps costs off the balance sheet and allows Cyanotech to use capital for business expansion.”
Construction took approximately three months and the cost “cannot be disclosed,” Johansen said. The solar array will begin providing power once HELCO approves, she added.
Gates thanked HELCO for providing the Big Island with a steady, seamless supply of reliable electricity while “solving problems most of us never heard of and do not understand.”
“Today as the HELCO grid continues to host a daily increase in grid-tied solar, the HELCO team has been forced to solve problems the rest of the world is only theorizing about, while their costs have increased and their revenues drop with each new system,” he said. “The Hawaiian Islands have a deep history with electricity. Thanks to the visionary leadership of King David Kalakaua, Hawaii’s Iolani Palace was lit by electricity even before the White House was. Again Hawaii is leading the world with the highest percentage of distributed renewables of any U.S. state. And with its access to abundant sunlight, consistent winds and steady geothermal, Hawaii is the ideal laboratory in which we can work together to create winning global strategy.”
Gates shared his hope for Hawaii, which included avoiding the lure of cheap natural gas and instead forming partnerships between distributed renewable producers like Neighborhood Power and local utilities. “With simple pricing used in grids around the world, we can strengthen Hawaii’s electricity infrastructure and lower rates while increasing utility company profits,” he said. “Through the use of private investment, distributed renewable energy microgrids can be built across our islands, creating an interdependent, strong, self-reliant system that builds on the current grid infrastructure.”
To offset the environmental impact of building this project, Gates said Neighborhood Power planted 14,000 trees — basically 20 trees for every kilowatt of solar installed — through nonprofit Trees for the Future.
Other good deeds announced by Wong during Thursday’s celebration were donations of $5,000 each to the Friends of NELHA and the Guy Toyama Memorial Scholarship Fund.