GOVERNOR LINGLE ANNOUNCES STRATEGIC ENERGY PLAN

For Immediate Release:  January 12, 2006

HONOLULU –Governor Linda Lingle announced today a bold and strategic energy plan, which encourages and supports market-based development of reliable, cost-effective, and self-reliant energy for Hawai`i.

“This comprehensive and timely energy plan provides "homegrown" energy solutions today, which will create a secure energy and economic future for the people of Hawai`i,” said Governor Lingle.  “It seeks to establish Hawai`i as a leader in the global, hydrogen economy by accelerating the development of the state’s own indigenous, renewable energy resources,” she added. 

When fully implemented in 2020, the conservation, renewable energy and alternative transportation fuels components of this plan will displace the importation of 110 million barrels of crude oil, retain $6.32 billion in our economy that would have gone to purchase oil, and eliminate 49 million tons of carbon dioxide emissions.

Drawing on ideas put forth by the Hawai`i Energy Policy Forum, the Economic Momentum Commission (EMC) and others, this plan comprehensively addresses Hawai`i's decades-long over-dependence on imported oil for its energy through integrated and complementary approaches to achieve results over the near-, mid-, and long-term.  Its components include:
 “Savings through Efficiency”
 “Independence through Renewable Energy”
 “Fuels through Farming”
 “Security through Technology”
 “Empowering Hawai`i’s Consumers”

 “The State's combination of abundant renewable resources, high fuel prices, limited geographic area, and recognized expertise in hydrogen technology R&D, makes it an ideal location to lead the state’s transition to a renewable energy-to-hydrogen economy.  By attracting considerable investments of capital and expertise to Hawai`i, we will be investing wisely for our future needs,” said DBEDT Director Ted Liu. 

Hawai`i, like much of the world, is competing with the strong demand for increasing imports from the oil-producing countries.  Nations that used to be net exporters of petroleum to Hawai`i, like China, have become major importers.  This intense competition for the same diminishing energy resource – crude oil – has led to a significantly higher new "plateau price", from which experts have concluded historical low price trends will not return.

Unlike other parts of the world, however, Hawai`i has abundant natural assets and competitive advantages which can be turned into renewable energy for electricity and transportation fuels – year-round sunlight, wind, geothermal, and untapped ocean and agricultural resources. 

“These are our resources that should be used to secure our energy future and stimulate our economy,” said Ted Liu. 

A 2003 study by Stillwater Associates projected that an ethanol industry of 90,000,000 gallons per year "could add as much as $300,000,000 to Hawai`i's economy in direct and indirect value."

In addition, emerging energy technologies can increase the use of Hawai`i’s renewable resources through their conversion to hydrogen-rich fuels as energy carriers, stimulating more economic growth and making the state more self-reliant.  With advanced hydrogen technologies, renewable resources not only can be stored, distributed, and used in a variety of clean, efficient power and transportation applications state-wide, but can be exported as well.

“The bottom line is the status quo is unacceptable,” said Ted Liu.  “After decades without a meaningful plan, it’s time we established these bold, integrated energy policies.  The Lingle-Aiona Administration’s initiatives will build reliable, cost-effective and strategic energy systems, based on Hawai`i’s own resources, in order to reduce future dependency and ultimately lower consumer costs.”

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For more information, contact:

Ted Liu 
Director, Dept. of Business, Economic Development and Tourism 
Phone: (808) 586-2355 

Maurice Kaya
Chief Technology Officer, DBEDT, Strategic Industries Division
Phone: (808) 587-3807

Lenny Klompus 
Senior Advisor – Communications 
Phone:  (808) 586-7708 

Russell Pang 
Chief of Media Relations
Phone: (808) 586-0043