Geothermal on Maui

On July 20, the all Native Hawaiian-owned company, Innovations Development Group (IDG), held a public meeting at Pukalani’s Mayor Hannibal Tavares Community Center, to “share their philosophy and get feedback from the community.”

Geothermal got a bad rep when the early Puna well released hydrogen sulphide into the air, sickening residents.  Mililani Trask gave a presentation on Maui in support of geothermal, contending that the technology used will prevent H2S releases.  In fact, the heat exchangers proposed for the well should eliminate H2S releases except during drilling (before the exchangers will be installed).

Geothermal is a State owned resource and operators must pay a 10 percent royalty  on gross earnings to the state.

In a slideshow pie chart presented at the Pukalani meeting, IDG outlined the basics of what a 50-megawatt plant’s cashflow might be. With their model, 54 percent would go to operating costs, debt service and taxes; 28 percent would cover the cost of capital and developer’s equity; 10 percent goes for state royalties; six percent goes to the landowner; and the remaining two percent—estimated at $1.25 million per annum, totalling $65 million over a 50-year lease—goes into a community trust.

“At the end of the lease,” Trask said, “the assets transfer to the state, which is how you create a portfolio for public utility.”

IDG has been active in developing geothermal plants in New Zealand.

Read a thorough report on the meeting at MauiTime