Self-Reliance and a Return to Energy
2006 was the year NELHA stepped fully into financial self-reliance. For the first time since its founding, the laboratory received no general fund support from the State of Hawai‘i. To stabilize, NELHA restructured seawater rates, aligned land lease policies with market conditions, and reduced operating losses while tackling costly infrastructure upgrades.
At the same time, the Park looked toward its next chapter. Foreign Trade Zone status opened new opportunities for tenants in global trade. International delegations—from Taiwan to Morocco—visited to study Hawai‘i’s model. Energy research returned to the forefront: NELHA signed an agreement with Ocean Engineering & Energy Systems to construct the world’s first commercial OTEC plant, while Sopogy, HR Petroleum, and the Hawai‘i Natural Energy Institute advanced solar, biofuel, and hydrogen projects. Even after the October earthquakes rattled Hawai‘i Island, operations continued almost without disruption, underscoring the Park’s resilience.
Highlights:
- First year of no General Fund support; NELHA moved toward full self-reliance.
- Seawater rates increased 20% annually until full cost recovery; new lease policies raised extractive rates to $3,000/acre-month.
- Operating loss reduced to $47,000 before accounting for a $500,000 A/C system replacement; total loss $552,000.
- Legislature appropriated over $1.5M for capital projects: master plan update, airport connector road, seawater system upgrades, freshwater valve installation, and groundwater monitoring wells.
- Foreign Trade Zone status granted in September 2006, broadening tenant opportunities.
- International delegations from Taiwan, Korea, Morocco, and others visited to explore deep seawater bottling and standards.
- NREL grant supported continued studies on distributed energy grids.
- Agreement signed with Ocean Engineering & Energy Systems to construct world’s first commercial OTEC plant at NELHA.
- Sopogy proposed a 10 MW solar thermal project; HR Petroleum advanced algae-derived biodiesel; HNEI began hydrogen fuel research at the Gateway Center.
- CEROS received $6.9M in DoD appropriations; Richard Hess became Technical Director.
- Earthquakes on October 15, 2006 caused only minor seawater interruptions; operations restored within hours.