Hawaiian Electric, via its HELCO subsidiary, is scheduled to select its partner for a 50 megawatt geothermal development on the Island of Hawaii within a matter of weeks.
HELCO’s selected partner will build and operate the geothermal plant, and sell the resulting power under the terms of a power purchase agreement.
HELCO reportedly received six proposals before its March deadline for responses to its RFP.
Bidders likely include Irael-based ORMAT, which operates the existing geothermal plant as Puna Geothermal Ventures, and Innovations Development Group’s Huena Power, which boasts a “native-to-native” business model.
Although the contract award is imminent, community opposition continues.
More than 400 people staged a peaceful protest in front of HELCO’s office in Hilo last week, according to activist Jim Albertini.
“I haven’t seen that many Puna folks out since the rainforest protest in 1990. It was a lively gathering, including drumming, chants, and lots of creative signs. People actually marched more than 20 miles from Pahoa to Hilo over 3 days, including many senior citizens. The final leg today had about 200 coming in from Panaewa/Puainako. Organizers did a great job. They delivered a petition to HELCO CEO Jay Ignacio with over 3400 signatures. This was a big event for Hilo. The response from cars passing by was enthusiastic. HELCO is not loved. There should be coverage in the Trib tomorrow. HELCO and the powers that be better take this seriously. If they push forward with more geothermal there is likely to be large scale non-violent civil disobedience, similar to what helped stop the destruction of the Wao Kele O Puna rainforest by 500MW of geothermal energy planned there.”
The petition read:
“We want Hawaii Electric Light Company (HELCO) to stop its contract for new geothermal development on the Island of Hawaii, because the contract was excluded from the utility company’s recent public planning effort, and previous geothermal sites on this island have been notoriously unsafe, unclean, and poorly regulated.’
Meanwhile, New Zealand energy company, Eastland Group Limited, has at least temporarily written down a $1.25 million “advance” to Innovations Development Group that was to be repaid in cash “or by the exercise of an option held by EGl to invest in a Hawaiian based geothermal project controlled by IDG. ”
The information appears in a footnote to Eastland’s financial statements for the year ending March 31, 2012.
Eastland Group limited has advanced to Innovations development Group (IdG) a total of usd $1.65 million which, as at 31 March 2012 had a carrying value of NZD $2.0 million. USD $400k of this loan is repayable in 6 monthly instalments, once management fees payable to IDG in accordance with the TAOM project development agreement are paid to them. It is expected that these repayments will commence during the 2012/13 financial year. the remaining us $1.25 million is repayable within 5 years either in cash or by the exercise of an option held by EGL to invest in a Hawaiian based geothermal project controlled by IDG. after taking into consideration the stage that the TAOM and Hawaiian projects are at as at 31 March 2012, and in accordance with the requirements of New Zealand International Financial reporting standards, the directors have decided to provide for the USD $1.25 million as at this date and will continue to monitor this on an on-going basis for indication of reversal of this provision. There is a general charge over the IDG interest in TAOM as security for the USD $1.25 million loan.
Eastland is 80 percent partner in the Te Ahi O Maui geothermal project (TAOM) in New Zealand, with IDG holding a 10% partnership interest. IDG apparently leveraged payments it would be due for participating in TAOM to get the $1.65 million loan which it has used to pursue the HELCO geothermal contract.
IDG says its technology is more modern and safer than that used by ORMAT’s Puna Geothermal Venture. However, it is apparently untested in Hawaii and it’s suitability to Hawaii’s active volcanic environment still to be proven.
Innovations Development Group was founded by Roberta Cabral, who pleaded guilty in 2002 to federal charges of tax evasion and wire fraud stemming from two schemes to defraud the labor organization, Unity House, Inc.
One set of tax charges related to commissions Cabral received from North Pacific Investments, Inc., which promised Unity House big returns that were supposed to be earned on investments in “prime bank notes.” Former Campaign Spending Commission Executive Director Jack Gonzales was sentenced to 15 years for his role in the same investment fraud.
Other charges resulted from what the government described as “a scheme to ‘pad’ the budget of a one-hour television project funded by Unity House, Inc. entitled ‘Heavenly Road’, later known as ‘Blue Hawaii’, for which she was to receive a kickback of $150,000.”
Innovations Development Group also made news last year when it put money behind former football coach Cal Lee’s campaign to unseat OHA trustee Haunani Apoliona.
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One would expect that the people behind alternative energy development companies to be scientists and engineers. In Hawaii, they are politically connected lawyers, PR types and mafioso. Ian Lind is the only person who seems to notice this.
From my recollection Big Island geothermal got restarted by Ku’oko’a (Roald Marth, Ted Peck, Richard Ha) in proposing to buyout HECO … and then IDG joined in … and together put together a coalition with Mayor Kenoi & OHA (royalties disbursed 50% DLNR, 30% County of Hawaii, 20% OHA ). All these folks then put pressure on HELCO. Too funny is that IDG had the gall to offer the State to “buyout” its developer stake after say 2 years (thereby making a quick buck monetization profit). So I wouldn’t blame HELCO: geothermal is the result of rent-seeking special interest coalitions politically pressuring HELCO to do projects that its non-political engineers would consider unwise (specifically, population load growth is *not* on east side but rather on the west side … and transmission lines will need a major expensive upgrade to transport power from Puna to say Kona … so all that is happening is *cost shifting* from the generation segment to the transmission line segment with the net-net all-in-cost of geothermal being*not* cheap). Follow the money: geothermal is all about robbing HELCO ratepayer “Peter” to pay royalties & developer fees “Paul” (with HELCO the whipping boy). Auwe!
There are several points you raise, each of which merits separate discussion, at least to keep my own thinking clear.
I am not convinced geo-thermal development on Hawaii island is a bad idea. If it can be developed in an environmentally sound fashion and IF the benefits of its development are shared broadly among the people of the Big Island.
I say that recognizing there have been bad experiences with geo-thermal in the past. So it is up to the state, to HELCO and the specific advocates to take on the burden of building trust with the community.
On the indebtedness of IDG to the New Zealand based Eastland group, WOW! That explains a lot. Some of the people associated with the IDG group have been extremely rude and impatient to anyone who opposed the PLDC and/or geo-thermal development. I had attributed that to the personalities involved with IDG. I now see whatever personal traits I may have observed were operating under the extreme pressure of having to come up with some way to repay the million dollar plus advance.
Why the heck did the Eastland group have confidence IDG could ever secure permission to develop geo-thermal enough to re-pay the advance? Did the principals of IDG have to offer up other assets as collateral? This is troubling and deserves closer inspection.
Can you offer a bit more informed insight into this matter? I am particularly interested in what this passage might mean:
[Eastland has agreed]”at least temporarily written down a $1.25 million “advance” [to IDG].
“Why the heck did the Eastland group have confidence IDG could ever secure permission to develop geo-thermal enough to re-pay the advance?”
IDG plays the Native Hawaiian card.
Obviously, the foreign company wants in to Hawaii’s energy industry. It looks like the IDG is the only Hawaii company doing geothermal. Its unfortunate that the editor of this blog is bent on trying to ruin Hawaii’s chances for access to cheaper electricity by digging up past information on one of the principals of IDG. I say, so what! Everyone has a right to redeem themselves. Especially when they are trying to do go stuff. Ian Lind acts like he has never done anything wrong. In America, everyone has a right to redemption. Ian Lind has decided to muddy the geothermal waters. He obviously doesn’t support geothermal. I say good work by the IDG to bring cheaper electricity using a proven technology.
Ian Lind is of no consequence. He’s a has been!
Thanks for your thoughtful contribution.
Problem with Ian Lind is he tells one side of the story by stringing together inferences that so readers will draw faulty conclusions. He is a hired mercenary. Take his rant on Cal Lee for example. So what? Haunani had supporters from the Unions, Senator Inouye and donors who profited from her 10 year spending spree as OHA’s Chair. There is no crime in receiving donatons–everyone does it. Lind’s motives are suspect.
This type of reporting has made Lind a has been. Naturally he fails to reveal who he as worked for including Haunani Apoliona.
Just for the record, I have never worked for Haunani Apoliona.
The “has been” part, well, that might be me. Depends on your point of view, I guess.
These comments, from “Brown” and “Jones,” reflect poorly on the principals of IDG.
Just for the record, Im not representing IDG. Again, you make assumptions. As Mr Lind clearly pints out, “Depends on your point of view”.
Mr Lind quotes unsubstantiated reports on the “peaceful protest” in Puna against geo-energy development submitted by activist Jim Altertini and recycles old news on IDG’s founder for events nearly two decades ago. A lot of good has happened since. His report is slanted and represents poorly an objective article.
Im Hoping your call sign does not represent the Kolea Bird–known to Hawaiians as “a hit-n run” migratory bird, known for its “sweet voice” that feeds in Hawaii during the winter and splits in the summer after it has feasted off the land. ….sound familiar?
The Kolea also feast in Alaska, fattening up to flying non-stop for 3,000 miles, with no place to land until they get home to Hawaii. Where they spend most of the year before flying back to Alaska.
Kolea have been doing this for hundreds of thousands of years. Yet you find something morally objectionable about such behavior? Curious, your values.
You may not be officially representing IDG in your comments here, but an organization (or candidate or even a “cause”) benefits or suffers from the quality of people who step forward to speak for (or against) them.
I am not commenting on your over-all qualities as a person. I am sure there is much that is admirable about you. But your comments, along with those of “Lono Brown,” were unworthy. And given the intense, personal attacks I have seen from some of the principals involved with IDG, they reinforce the sense this is the way IDG operates.
Your criticisms of Ian’s narrative would be much better received if you laid off the personal attacks. And even if you don’t “represent” IDG, if you have their interests in mind, you may want to reflect upon this.
As always, your mileage may vary.
Holy smokes, personal attacks on a journalist. Not persuasive, unless the goal is to repel people.
Personal Attacks on the journalist? A journalist isn’t God! Readers have the right to question a journalist’s motive. Especially when he has personal motives in collaboration with Haunani Apoliona. Everyone in town knows of Ian Lind’s relationship to Apoliona who garnered friends by using Hawaiian monies to buy favor. Ian Lind is one of them.
Okay, Lono Brown. It’s “put up or shut up” time.
You claim: ” Everyone in town knows of Ian Lind’s relationship to Apoliona who garnered friends by using Hawaiian monies to buy favor. Ian Lind is one of them.”
So don’t be coy. Exactly what “relationship” involving “Hawaiian monies” do you believe I have with Haunani Apoliona? Some “fact”, please, if you really think you have any.
In this case, I have no idea what is fueling your imagination.