Ethanol is not presently manufactured in Hawaii.
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Hawaii State law requires all gasoline sold for vehicles to have 10% ethanol blended (E-10). No E-85 (85% ethanol) is yet sold for flex fuel use. Presently, over 40,000,000 US gallons (150,000,000 l; 33,000,000 imp gal) of ethanol are imported from the Caribbean or continental US. Shipping costs, which amount to 20 to 30 cents per gallon, are passed on to the consumer.
Several companies registered to make ethanol over 3 years ago in Hawaii, but none had started construction as of 2008/9. The two sugar cane plantations are expected to make ethanol, but only Gay and Robinson on Kauai plan to stop sugar operations to make ethanol, using two processes. The first technology is fermentation of a faster growing cane and secondary process employs Clear Fuels cellulosic process from the waste (bagasse) of the first process. Enough ethanol is expected to be made for Kauai's use, but it must be shipped to Oahu for blending and returned for sale .
The University of Hawaii is researching thermophilic algae by La Wahie to make ethanol. Sun makes algae grow faster in the tropics and animal feed may be available from cane leftovers. CO2 is absorbed by the catalyst.
Several other ideas have come forward with agricultural basis on the island of Hawaii where former cane fields lie fallow. One company wants to use the wood grown in old cane areas that were planted with eucalyptus. High costs are an obstacle.
The City of Honolulu has incinerated garbage to produce electricity (h-power) since 1992. It presently handles about half of the island's garbage and green waste. A new boiler is projected to cost $65,000,000. The 2 old boilers are down often for repair.
Diamond Head Renewable Resources LLC (DHRR), proposes to make alcohol fuels, including ethanol, from garbage, biomass and green waste. The projected conversion of waste to fuel is needed to reduce greenhouse gas emissions. They are also considering landfill methane as a feedstock for making ethanol. The plant makes a syngas (synthesis gas) that is converted by catalysts to fuels. Syngas can be burned to generate electricity. The plant is expected to produce over 10 megawatts of power, for its own use and for the grid. Net reductions of approximately 74,000 tons of CO2 are available using 10% biofuels.
The plant is expected to use 350 dry tons a day to make product and electricity, producing 12 million gallons of a mix of ethanol, methanol and other alcohols a year, growing to 40. This process and technology is similar to the Clear Fuels proposal, without the sugar to ethanol element.
Food-based ethanol projects have had financial difficulty, because the incentives from the Farm act of 2008 emphasize cellulosic biomass to ethanol. Incentives include a $1/gallon tax credit, loan guarantees, and grants or funds available for small operations. State incentives include tax incentives and a business development department. Second generation ethanol is a priority for permitting by health officials.
A 100% state tax credit for high tech and new generation ethanol may be reduced or abolished.