2007

Energy on the Horizon, Resilience in the Face of Challenge

View The 2007 Annual Report >>

In 2007, NELHA reached financial self-sufficiency for the first time, marking a major turning point after decades of growth. Even as energy costs rose sharply and two October 2006 earthquakes damaged deep seawater pipelines, the lab pressed forward with determination. Repair crews worked creatively to restore service, while leadership pursued bold plans for renewable energy—issuing RFPs for a 5 MW solar array and a 1 MW OTEC demonstration plant.

Aquaculture remained vibrant, with abalone, kampachi, shrimp, and other ventures thriving. Meanwhile, new energy and biotechnology tenants—from algae-based biofuels to solar thermal projects—signaled a shift toward a diversified, sustainable future. CEROS continued to funnel Department of Defense funding into innovative ocean technology projects, adding to Hawai‘i’s reputation for cutting-edge research.

Highlights:

  • Reached self-sufficiency: no general funds used; operations covered by tenant revenues.
  • Secured $365,000 annual state subsidy to offset high electricity costs for aquaculture tenants.
  • October 2006 earthquakes damaged deep seawater pipelines; emergency repairs restored supply.
  • Issued RFPs for 5 MW photovoltaic array and 1 MW OTEC plant—major public/private energy projects.
  • Recruited four major energy tenants: Cellana (algae biofuels), Keahole Solar Power (solar thermal), Hawaii Natural Energy Institute (hydrogen), Hawaii EODC (solar concentrator).
  • Lease rates restructured for the first time in NELHA history; seawater pricing adjusted for sustainability.
  • $1.3M released for capital improvements, including airport connector road planning, pipeline expansion, and potable water system upgrades.
  • $5.25M appropriated for 55” pipeline pumping and distribution expansion.
  • Two new aquaculture tenants leased 15 acres (names not specified in the report).
  • Water Quality Lab reorganized; first manager hired in four years.
  • CEROS funded 17 defense-related ocean technology projects with $5.5M in federal support.

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