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DOE Hydrogen Program Request for Information

# DE-FOA-0002529

RESPONSES DUE: July 7, 2021, by 5:00 p.m. ET

SUBMITTED BY: County of Hawaiʻi Department of Research and Development

Introduction:

The County of Hawaiʻi’s (County) objective is to transform the island to net-zero carbon transportation systems. The following information, laid out in this Request for Information (RFI), highlights the County’s goals to make progress and fulfill our objective. The main goals discussed are: (i) Convert the County’s vehicles from fossil fuel power systems to hydrogen/electric, (ii) Develop a Renewable Technical Center to train the local work forces on assembly, maintenance, etc. and (iii), Increase hydrogen production, storage, and use through a clean, closed-loop energy system (i.e., production of hydrogen through renewable energy sources such as geothermal, wind, biomass, and solar and atmospheric water generation).

The County of Hawaiʻi is the sole local municipal government for the island of Hawaiʻi, the largest of the Hawaiʻian islands. 4,028 square miles in size and almost 200 miles by air from Honolulu, Hawaiʻi’s State capital on the island of Oahu. Roughly the size of Connecticut and twice the combined size of the other counties in the State of Hawaiʻi, the County is a place of spectacular natural beauty and deep cultural roots. Although the island draws thousands of visitors each year, what often goes unnoticed is the lag in economic health, population health, and prosperity compared with the rest of the State and the Nation. Hawaiʻi island communities are geographically dispersed with transportation and communication challenges that adversely impact access to jobs and opportunity. Back-to-back disasters have adversely affected the County’s most vulnerable populations. The 2018 Kilauea Eruption and Earthquakes disaster followed by Hurricane Lane and then by the COVID-19 pandemic have made already isolated communities at risk of economic and social inequity. A spirit of resilience and innovation over hardship pervades however as a result of Hawaiʻi island’s remarkable human and natural capital resources. The County is poised to make responsible use of its assets in collaboration with multiple partners to transform to a net-zero carbon hydrogen economy, adding new opportunities that will benefit all residents, the environment, and serve as a model for other island communities.

Regional Hydrogen Production, Resources, and Infrastructure

1. Please describe specific ideal regions to support a hydrogen demonstration project which have the necessary resources available for clean hydrogen production and infrastructure, including, but not limited to water, renewables, nuclear, natural gas (with CCS) or other energy resources captured from waste streams (e.g., landfill, flare gas, wastewater treatment).

a. How much hydrogen could be produced (in tonnes per day and per year) and from what resources? State the amount of each resource available, including water as required.

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i. The Hawaiʻi Natural Energy Institute (HNEI) Hydrogen Station. as described below, can produce up to 65 kg of gaseous hydrogen per day at 99.999% purity. The primary energy source is currently grid power that is ~83% renewable energy during sun hours reducing to ~50% at night. In addition, HNEI is working with NELHA to increase the use of solar power as NELHA increases its solar power production infrastructure incrementally over time. NELHA also hosts a 100kW R&D Ocean Thermal Energy Conversion (OTEC) plant that could supply 24/7 power to the HNEI electrolyzer.

ii. Landfill Waste to Energy. The County Hawaiʻi plans to convert landfill methane to hydrogen using solar panels and atmospheric water generation. For every 1kg of hydrogen we will need 2.6 gallons of water. The landfill also is a source of municipal solid waste (MSW) and green waste that could be converted to hydrogen through a combination of gasification and electrolysis.

iii. Puna Geothermal Ventures (PGV) Geothermal Plant. The Geothermal Plant resource is ~500MW and is currently permitted to produce 60MW. The current power purchase agreement with the electric utility is for 38MW leaving 22 MW of 24/7 base power available under its current permits for hydrogen production for a daily production of 4.8 tonnes of hydrogen per day and 1,752 tonnes per year. There is an opportunity to increase power production as more renewable energy project opportunities occur.

b. Is there any existing hydrogen infrastructure or infrastructure that could be repurposed as part of a hydrogen demonstration? State specific location if available.

i. The HNEI Hydrogen Station (Figure 1) is in the Hawaiʻi Ocean Science and Technology (HOST) park at the Natural Energy Laboratories of Hawaiʻi Authority (NELHA), south-west of the Ellison Onizuka Kona International Airport at Keahole Point on the Island of Hawaiʻi. The station became fully operational in 2021. The station and three Hydrogen Transport Trailers (Figure 2) can be used for hydrogen demonstration projects including demonstrating central production and distributed dispensing at a variety of locations throughout the island. In addition, the County’s Mass Transit Agency (MTA) is in the process of acquiring three hydrogen buses (Figure 3). Hydrogen that is produced at the HNEI-NELHA hydrogen station will be used by hybrid hydrogen-electric fuel cell vehicles that use 350 Bar hydrogen for electromotive drive. The first vehicle that will be supported by the station is a 29 passenger US-Hybrid ADA compatible Hele-On fuel cell shuttle bus based on a Ford F550 Cabin manufactured by Eldorado National Co. and converted to hydrogen-electric drivetrain by US-Hybrid. The Hele-On shuttle bus will be operated by the County. The County is planning a public event to be held in August 2021 to demonstrate and educate the public on hydrogen technology and uses.

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Figure 1: Hydrogen Station

Figure 2: Hydrogen Transport Trailer

Figure 3: County 29 Passenger Bus

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ii. HNEI also has recently received delivery of brand-new hydrogen dispensing station equipment that is stored in crates and ready to be installed consisting of a Powertech dispenser and novel fueling post/boost compressor system (Figure 4 and 5). That equipment was originally intended for installation at Hawaiʻi Volcanoes National Park but has relocated for installation at the County’s MTA bus maintenance facility in Hilo. As illustrated in Figure 6, hydrogen would be supplied using the HNEI hydrogen Transport Trailers that would deliver hydrogen from NELHA to Hilo. A full trailer would be dropped off and an empty trailer would be delivered back to NELHA to be refilled.

Figure 4: MTA Hilo New Dispenser

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Figure 5: MTA Hilo New Fueling Post

Figure 6: Central Production and Distributed Dispensing

c. Is there large-scale hydrogen storage available such as geological storage, salt caverns, depleted oilfields, pipelines, or other appropriate options for hydrogen storage? If so, at what volumes?

i. No, there are no geological storage options for hydrogen on island. ii. HNEI is investigating the use of (fiberglass reinforced panels) FRP line-pipe

as an option for bulk hydrogen storage. The advantages are flexible siting allowing it to be located close to the end-user, it has a 50-year life, it has been designed to store hydrogen at 2,500 psi, there is no limit to how much hydrogen can be stored – just add more pipe, has undergone extensive testing

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by Savannah River National Laboratory (SRNL) and Oak Ridge National Laboratory (ORNL) (with US DOE funding), and has been approved by American Society of Mechanical Engineers (ASME) for hydrogen use.

d. Are there existing hydrogen refueling stations or liquefaction plants in the region, or plans underway for such infrastructure? If so, at what scale?

i. Yes, there is one existing hydrogen refueling station (refer to 1b for location details). The station has three components: a Proton Onsite C30 Electrolyzer, one Hydro-Pac 450 Bar Compressor, and three Powertech/HNEI Hydrogen Transport Trailers. As mentioned, the C30 Electrolyzer can produce up to 65 kg of gaseous hydrogen per day at 99.999% purity. The 450 bar mobile tube trailers, each composed of 12 Type 3 (Department of Transportation) DOT composite storage cylinders, can store up to 102 kg of hydrogen compressed to 450 Bar. The compressor was oversized and can compress up to 120 kg of hydrogen per day which allows us to double electrolyzer production capacity at NELHA.

ii. There are plans to build a liquid hydrogen plant at the PGV geothermal plant to support the export of hydrogen from the Island of Hawaiʻi to a major off-take market on the Island of Oahu using airships. Refer to 11b.

e. Describe any environmental or ecological impact, both positive and negative (e.g., are there any wetlands, NEPA issues, environmental justice communities, other considerations).

i. Environmental impact is site specific and would need to go through a public commenting process to understand the community’s response, both positive and negative, to net-zero carbon energy projects. The County strives to catalyze meaningful climate action to reduce greenhouse gas pollution while also supporting environmental justice, job creation, and economic opportunities. The County aims to be a leader and steward to addressing environmental inequities and to take action to address and remedy these disparities. Airborne concentrations of SO2 and PM2.5 (fine particles) are measures within the Hawaiʻi Volcanoes Nation Park and across the Island of Hawaiʻi. VOG emissions, created from the volcanos, are a public health concern. In addition, PM2.5 from motor vehicle, utility generation, and industrial facilities is a public health concern.

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The 2017 State of Hawaiʻi Annual Summary Air Quality Data1, monitors five locations on Hawaiʻi Island (Refer to Table: 4-6: 2017 Summary of the 24-Hour PM2.5 Averages). A benefit to achieving a net-zero carbon transportation economy, for the Island of Hawaiʻi community and public health, is to improve air quality during these non-eruption years. More broadly, the County has completed a greenhouse gas inventory for 2005 and 20152, and is currently in the process of completing an inventory for 2017. An ongoing trend is the Transportation sector being the largest emitter of greenhouse gases.

ii. HNEI completed an Environmental Assessment (EA) when it was originally planning to install a hydrogen production system at the PGV Geothermal Plant which resulted in a Finding of No Significant Impact (FONSI). The County has experienced several volcanic eruptions which can impact a project. In 2018 the Kilauea eruption caused significant damage to Volcanoes National Park that resulted in abandoning the plan to install a hydrogen dispensing system. The equipment is being repurposed for installation at the County MTA maintenance facility (Refer to 1.b).

1 (2020). (rep.). The 2017 State of Hawaiʻi Annual Summary Air Quality Data. Retrieved from https://health.hawaii.gov/cab/files/2020/05/aqbook_2017.pdf

2 (2020). (rep.). Greenhouse Gas Inventory for 2015. Retrieved from http://records.hawaiicounty.gov/Weblink/1/edoc/102649/COH%20GHG%20Emissions%20Inventory%20for%202015%20Report.pdf:/

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f. Is the region a brownfield or greenfield site? i. No, this region is not a brownfield or greenfield site.

g. What siting concerns, if any, need to be addressed? Would any mitigation plans be required (e.g., flood plain or other siting challenges such as hydrogen coupled with offshore wind)?

i. There are no unique siting concerns. Hawaiʻi follows National Fire Protection Association (NFPA) 2 Hydrogen Safety Code for siting, setback distances, and overall safety. The County’s Planning and Public Works Departments approved the installation of the first hydrogen station located at NELHA and has gained the necessary experience and confidence in siting future hydrogen facilities.

h. Are there carbon capture and sequestration facilities that may be utilized in the vicinity and what scale of hydrogen production and CO2 storage could be achieved?

i. No. In this case the County has an ongoing conversation with the airlines concerning Synthetic Aviation Fuel (SAF). The goal is to capture and take carbon from the atmosphere to make kerosene. In discussion is a pilot facility to produce hydrogen using a 1 MW photovoltaic facility. In the same vein, a long-term goal is to make this available statewide and have the Geothermal Plant produce the hydrogen to produce SAF for the state. See response 1.b.iii for the PGV Geothermal Plant production capacity.

i. Are there any other considerations in the region for large-scale hydrogen production?

i. Refer to response 1a for capacity details. The County and partners are looking at harnessing other renewable sources to use their curtailed energy or energy not used. For example, the Hawi Wind Farm has expressed interest in donating their unused energy from their 140megawatt PV site. We are looking at opportunities like this to create a closed-loop energy system to produce hydrogen on island. Refer to Section 11b for hydrogen export opportunities.

j. What are the demographics of the area immediately surrounding the site, including racial demographics and socio-economic characteristics?

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Figure 7a3

3Hawaii 2015-2019 ACS 5-Year Estimate. (n.d.). map. https://histategis.maps.arcgis.com/apps/MapSeries/index.html?appid=feb19b4cef564ed1ab7067f7956a83f2.

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Figure 7b4

4Hawaii 2015-2019 ACS 5-Year Estimate. (n.d.). map. https://histategis.maps.arcgis.com/apps/MapSeries/index.html?appid=feb19b4cef564ed1ab7067f7956a83f2.

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k. What are the characteristics of the area immediately surrounding the site (e.g., residential, industrial, rural, urban)?

i. The HNEI/NELHA site is located along the coastline within the HOST. The site is adjacent to the Kona International Airport. The closest residential neighborhood is across Queen Kaahumanu Highway approximately three miles from the site. The area surrounding the site is primarily volcanic rock land, with the largest central business district, Kailua-Kona, being approximately eight miles south of the site.

ii. The MTA site is located on County land that is a vacant undeveloped industrial site with no other buildings in the immediate area except for the MTA base yard. There is a 35-acre lot (Figure 8) owned by the County that shares a boundary to the MTA base yard and is envisioned to support a Bus Assembly Facility, a Renewable Energy Technical Workforce Development center, and a variety of bus component sub assembly shops to support the assembly and O&M requirements of operating a fleet of FCEBs. Refer to Section 6b.

Figure 8: County Land for Bus Assembly & Renewable Technology Technical Center

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End Users for Hydrogen in the Region and Value Proposition

2. Please describe existing and potential future end users for the hydrogen in the region, such as industrial, transportation, chemicals manufacturing, heavy-duty trucks, and other end uses.

a. Distinguish between existing and potential future end users and specify anticipated time frame.

i. The County currently imports all nonrenewable energy fuels and has one hydrogen fueling station. The goal is to increase on-island hydrogen production for resiliency and efficiency. The transportation logistics of landfill operations involve a series of 22 collection (transfer) stations around the island with a fleet of county-owned Class-8 heavy-duty trucks (Truck) transporting the consolidated waste from these transfer stations to the landfill daily. Each truck is currently fueled by imported diesel fuel and returns empty to its point of origin at the end of each daily shift. A landfill energy capture and conversion system (project) intend to: (1) capture and utilize landfill gases to produce hydrogen on site; (2) procure and maintain a fleet of fuel cell electric trucks; (3) install and maintain a fueling infrastructure for the trucks and other fuel cell electric vehicles (FCEVs); and (4) develop, procure and maintain a hydrogen distribution system utilizing the previously empty returning trucks to transport stored hydrogen throughout the island. In December 2020, Sustainability Partners (SP) was awarded a 10-year contract to transform the government-controlled transportation system in the County to achieve zero emissions. With this partnership, we intend to transform the island to zero emissions by 2035 or sooner.

b. Specify the amount of hydrogen currently needed and potential future needs (tonnes per day and per year).

i. Currently there is no system that requires hydrogen on island. We expect with the addition of three hydrogen buses being added to MTA this year (2021) will require 1kg of hydrogen per 10 bus miles. Two 19 passenger buses each have a range of 100 miles and the third 29-passenger bus a range of 200 miles. The total daily maximum hydrogen requirement is 40 kg. That could be increased by opportunity fueling. For future needs, MTA needs 55 buses to operate the network sufficiently. Based on a requirement of 25 kg per day per bus, 1,375kg of hydrogen would be needed per day to fuel the bus fleet.

c. Specify the proposed distribution network and geographical footprint required to reach end users.

i. The proposed distribution network would be provided by MTA. The buses would be fueled at the bus base yards. The main bus yard is in Hilo. The current MTA strategic plan calls for a second maintenance and fueling facility to be based on the west side near Kailua-Kona. The hydrogen would be produced at the Consolidated West Hawaiʻi Sanitary Land Fill located near Kailua-Kona. The hydrogen would be delivered using County transport resources. The geographic footprint required to reach each user is contingent upon the users of the buses and their routes.

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d. Are there any commitments already in place for off-takers or by when could there be commitments?

i. There are on-going discussions with our network to create a 1-to-3-year agreement for renewable energy projects. Longer term, the County’s goal is to develop a renewable energy market where off takers would be developed in the private market. In parallel, for example, the county is in the process of converting and phasing out all fossil fueled vehicles to electric/hydrogen. In turn, as the County utilizes more electric/hydrogen vehicles, the County is looking at creating a secondary market for electric/hydrogen vehicles as they look to replace aging vehicles. Additionally, the County’s goal is to set up a rental program for the public to utilize the County fleet during off-peak hours/days.

e. If using existing transport infrastructure are there limitations to the amount of hydrogen that can be blended into these systems and/or will there be modifications to these systems necessary to carry hydrogen?

i. There is no pipeline transport infrastructure and would need to be constructed, if/when practical. What would need to be transformed is the propane distribution system operated American Gas and Hawaiʻi Gas. The transport medium is delivery by trucks. Conversations with these entities about transforming to a hydrogen economy are ongoing.

3. Please describe the business case, including the return on investment and timeframe

Include the costs for all stages of hydrogen use, including production, storage, delivery, infrastructure, and end use.

Hydrogen Storage Cost

1,287 KG gaseous Hydrogen storage in pressurized tanks @ $589,500 per tank = $457 per KG

1287 KG times 423 scf / kg = 544,401 scf X .0791 kwh/scf = 43,062 kwh X .60% FC net eff. = 25,837 usable kwh.

$589,500 / 25,837 kwh = $22.81 per kwh for H2 storage after cap cost for production infrastructure is in place

Atmospheric Water Generation (AWG)

*The following cost information is from SOURCE (FAQ, 2021), an AWG company. However, the County has not gone through a Request for Qualifications. Therefore, this information serves as fiscal information only. “A standard SOURCE array is 2 Hydropanels, at an estimated project cost between $5,500 and $6,500* (including shipping, installation, and tax).”

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Price per kWh to fuel bus fleet costs Price per kWh

$0.10 $0.080 $0.060 $0.040 $0.020 $0.000

Kwh to fill tanks

1,500 1,500 1,500 1,500 $1,500 $1,500

Cost for hydrogen

$150.00 $120.00 $90.00 $60.00 $30.00 0

Cost per kg

$6.00 $4.80 $3.60 $2.40 $1.20 0

Cost per gallon

$23.08 $18.46 $13.85 $9.23 $4.62 0

Cost per mile

$0.60 $0.48 $0.36 $0.24 $0.12 0

a. What are the anticipated capital and operational costs? i. The anticipated capital and operational costs for bus fleet conversion and

training facility are estimated at 22 million. b. What local or regional policies or regulations, if available, would support the

business case?

The following Hawaiʻi Revised Statutes support the County’s business case.

Statute Description HRS 196- 10 Hawaiʻi renewable hydrogen program. The program shall design,

implement, and administer activities to manage the State's transition to a renewable hydrogen economy.

HRS 196- 42 State support for achieving alternate fuel standards. HRS 235-110.31

Renewable fuels production tax credit.

HRS 206M-63 Hydrogen investment special fund. There shall be established the hydrogen investment special fund. To provide seed capital for and venture capital investments in private sector and federal projects, as set forth in HRS 196.10 Hawaiʻi Renewable Hydrogen Program, and for any other purpose deemed necessary to carry out the purposes of that section [L 2019, c 56, pt of §2].

HRS Chapter 209E

State Enterprise Zones. 7-year holiday of the state business tax- up to 80% of tax and 100% credit against General Excise Tax owed for construction in enterprise zone or gross revenues of eligible products.

HRS 235-12.5 Renewable energy technologies; income tax credit. For solar energy, individuals or corporations may claim a state income tax credit equal to 35% of the system’s cost or elect to take a refundable payment (grant) net of payment due.

HRS 36- 41 Energy retrofit and performance contracting for public facilities. 3rd party financing for buildings.

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Statute Description HRS 36- 42 Vehicle fleet performance contracts for vehicle fleet energy efficiency

programs. 3rd party financing for vehicle fleet, fueling, and charging infrastructure.

HRS 196-2 Definitions. Statutory definition of "fuel". HRS 196 D Geothermal and Cable System Development. Streamlined permitting

process for geothermal energy and inter-island energy cable development. HRS 196-19 Life-cycle cost analysis. Energy efficiency and environmental standards for

state motor vehicles, transportation fuel requires life cycle and other tracking and reporting of state vehicles and fleets. HRS 196-11 defines life cycle costs in support of HRS 196-19.

HRS 103D-412 Light duty motor vehicle requirements. State vehicle fleet procurement policy that mandates and prioritizes: 1) electric or plug-in hybrid electric vehicles and fuel cell electric vehicles 2) other alternative fueled vehicles, 3) hybrid electric vehicles and then 4) fuel economy leaders.

c. Describe how the project is supported by or consistent with local or regional industrial cluster trends or initiatives.

i. The County collaborates with the state and other counties of Hawaiʻi to develop innovative solutions to achieve net-zero emissions. In order to build a clean energy economy, the County and partners are targeting the solicitation, procurement, and deployment of clean energy technologies. These net-zero emission projects are supported by local, regional, and state initiatives (refer to 3a above). For example, in 2017, Hawaiʻi County joined the Climate Mayors network to uphold the Paris Agreement to reduce greenhouse gas emissions, hold global warming to 1.5 degrees C, and accelerate the transition to a clean energy economy that benefits our people’s security, prosperity, and health. In December 2017, Hawaiʻi County Mayor Kim joined with the other Hawaiʻi counties in a pledge to transform transportation by signing a Proclamation of Commitment to 100% Renewable Ground Transportation by 2045. This would ensure that all public and private ground transportation is fueled by renewable energy by 2045. Additionally, the County pledged to lead by example and establish a goal of having 100 percent renewable-powered city fleet by 2035.

d. Describe, with specificity, anticipated economic opportunities for minority communities and/or underserved populations in the region.

i. The County aims to advance workforce equity on the Island through this diversification and availability of positions within the energy industry. In the same vein, by collaborating with Sustainability Partners, the County can increase the number of buses and infrastructure to serve people who rely on public transportation to commute and recreate.

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e. If already planned or available, describe financing mechanisms to be utilized or any other approaches.

i. In December 2020, SP was awarded a 10-year contract to transform the government-controlled transportation system in the County to achieve zero emissions. SP is a privately held infrastructure services provider based in Chandler, AZ, with a mission to modernize the aging and broken infrastructure controlled by government agencies with state of the art, advanced and efficient technologies to permanently eliminate deferred maintenance and inefficiencies in government-controlled infrastructure. SP does this by funding and maintaining all required upgrades and charging its customers only a usage fee, thereby eliminating capital constraint as a reason for inefficiencies. With transportation systems in the County, SP is actively replacing vehicle fleets with EVs and the related charging infrastructure and will apply this same approach, together with The Office of Energy Efficiency and Renewable Energy (EERE) funding, to utilize the otherwise lost energy in the landfill to fuel the solid waste collection trucks and other vehicles.

4. What is the potential benefit to utilizing hydrogen to enable grid resiliency? a. Are there opportunities for hydrogen storage as backup power for the energy

grid in case of power outages? i. Hawaiʻi has a few opportunities in the pipeline lined up for hydrogen storage

as backup power for the energy grid in case of power outages. The first is with Mass Transit’s bus fleet. As mentioned, our goal is to convert all fossil-fueled buses to hydrogen or electric and the County is well on its way to achieving this. The buses will be fitted with Export Power Units that deliver up to 10 kW of 110 and 220 VAC power for 30 hours. The buses can then be refueled to provide another 30 hours of emergency backup power. With these buses, we expect to have an inventory of fuel cell Export Power generators. The buses will be relocated to areas that are experiencing an emergency to help with lighting, refrigeration, dialyses, power for oxygen machines, supply power to electric power tools such as chain saws to clear roads, or whatever else is needed.

ii. The second project is to develop a storage site to hold 1,000 mega tons as backup to operate the island for 100 days. The mission is making the island very resilient against natural disasters and less dependent, eventually free, of fossil fuels.

b. What are the challenges with storing and production of hydrogen from the project at scale to support grid resiliency? The lack of hydrogen infrastructure necessary for storing, producing, distributing hydrogen at scale to MW scale fuel cells necessary to supply power to the grid utilizing the stored hydrogen.

i. MW scale electrolyzer connected to the grid can be used as variable loads to help control grid frequency as an ancillary service. The NELHA/HNEI hydrogen hub electrolyzer control system was designed be used to study the

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durability and response rate of electrolyzers acting as rapidly ramping variable electrical loads.

ii. The NELHA/HNEI hydrogen system was designed to be able to add a second 65 kg/day electrolyzer and thereby double the production capacity.

c. Are there opportunities to utilize hydrogen power to ensure cybersecurity? i. There are opportunities to set up hydrogen microgrids that are not connected

to the grid and isolated from other system.

Greenhouse Gas (GHG) and Pollutant Emissions Reduction Potential

5. Please quantify the amount of emissions reduction anticipated and in what timeframe. a. What is the carbon dioxide emissions reduction potential (in tonnes per year)

from cradle to plant gate and in what time frame? i. In 2014, Hawaiʻi Administrative Rules (HAR), Chapter 11-60.1 was amended

to adopt the new Hawaiʻi GHG program. The main requirements of the program are set forth in Subchapter 11, Greenhouse Gas Emissions. In conjunction, HRS section 226-109, promulgated in 2013, requires that Counties assess climate change vulnerability, set targets to reduce GHG, emissions, and develop and implement climate mitigation and adaptation plans. Converting the County 55 buses to hydrogen would save 86,000 tonnes of CO2 per year.

b. For complete pathway (production, delivery, storage, end use), specify total GHG reduction potential if available. Also, specify the boundary conditions for the life cycle emissions (upstream, within production plant gate, and downstream for end use).

i. For the years 2005 and 2015, the inventory was calculated by measuring annual direct and indirect GHG emissions, represented in metric tons of carbon dioxide equivalent (MTCO2e). The year 2005 acts as another baseline to the 1990 emission rate to measure progress against the United States’ nationally determined contribution (NDC) to global GHG emissions as agreed under the Paris Agreement. The choice of 2015 coincides with the State of Hawaiʻi’s latest GHG Inventory and reported using the most up-to-date data, as of March 2019, which suggests the state is on track to go below 1990 target by 2020. Currently, County is working on updating the inventory and developing a more precise, small picture, calculation for GHG reduction potential. As of now, the understanding of GHG reduction potential is big picture. County monitors seven sectors: transportation, commercial and industrial energy, residential, AFLOU (agriculture, forestry, and other land use), solid waste, industrial processes and product uses (IPPU), water and wastewater. Combined, in 2015 these sectors emit 2,712,042 MTCO2e, which was a 13.78% reduction in MTCO2e from 2005 (3,145,381 MTCO2e).

c. If there is potential for other emissions reduction (e.g., NOx, SOx, particulates), please specify anticipated amounts and in what time frame, as well as anticipated beneficiaries of the reductions.

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i. Refer above to Section bi for explanation. d. If there are caveats such as availability of CCUS facilities, please provide

details. i. Caveats such as availability of CCUS facilities are unknown or undetermined.

e. If there are offsets such as reforestation, renewable energy credits, etc. that may be provided as part of the project(s) in a region, please specify.

i. There is a new 30 MW bioenergy plant that is ready to come online on the East coast near of Hilo. The plant is supported by thousands of acres of reforestation and tree farming. If used for hydrogen production the plant could produce 4,380 tonnes of hydrogen per year. The buses would consume 500 tonnes per year leaving 3,880 available to fuel the County’s vehicle fleet of cars SUV, pickup trucks, tractors, garbage trucks etc.

Diversity, Equity, Inclusion (DEI), Jobs, and Environmental Justice

6. Please describe any additional opportunities for DEI, as well as environmental justice and the potential to positively impact underserved communities.

a. Describe community stakeholder engagement opportunities. i. In 2019, the County hosted a Transportation Hui (Hawaiʻian Translation of

‘Hui’ is a conference, meeting, or other gathering) to discuss, innovate, and collaborate on shared mobility options to focus on cleaner fuels and net-zero energy solutions. Many of these partners/stakeholders are listed below and more have been added since the 2019 Hui. The current stakeholders are: County of Hawaiʻi Planning, Public Works, Mass Transit, Mayor’s Office,

City Council, Housing and Community Development, Chamber of Commerce, Research and Development

Hawaiʻi Natural Energy Institute State Energy Office Ulupono Initiative PATH Hawaiʻi Elemental Excelerator Summers Architects Blue Zones Project Turo Kailua Village Improvement Business District South Kohala Traffic Safety Committee Robert’s Hawaiʻi Hawaiʻi County Economic Opportunity Council Enterprise Holdings Waikoloa Beach Marriott Hawaiʻi Electric Light Secure Bike Share Hawaiʻi Polynesian Adventure Tours Blue Planet Foundation

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BT Consulting Inc. Hawaiʻi Island Electric Vehicle Association Hawaiʻi Department of Health Hawaiʻi Department of Transportation UH Manoa Public Policy Center Kohala Coast Resort Association Cadmus Arizona State University Sustainability Partners

b. Describe opportunities to improve historically underserved communities.

i. The County is investigating an industrial benefits concept that leverages the capital expenditure to procure a fleet of new buses by providing employment for the local community including the economically challenged and socially disadvantaged communities of which there are several in the Hilo area. Instead of sending our capital to the mainland, the concept is to work with suppliers to set up a bus assembly facility in Hilo to install the drive trains. The drive trains would be shipped to Hawaiʻi as kits and installed by the local workforce. Our current drive train supplier estimated that 75% of the cost of the bus would remain in the local community. With an economic multiplier factor of 2.3 for Hawaiʻi (DBET), that would provide a significant level of new economic activity in a developing future-proof market. In addition, the same supplier has offered to provide a work force development program to train the technicians required to assemble the buses and provide O&M (Operations and Maintenance) ongoing support. The infrastructure would be installed on 32 acres of land owned by County that is adjacent to the main bus facility and leased to the project for $1 per year for 99 years. The concept is illustrated in Figure 9.

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Figure 9

ii. Co-located with the assembly facility would be subassembly shops for wiring harnesses, piping systems, battery testing and recycling and electric motors etc. The sub-assemblies would then be supplied to the Bus Assembly Facility.

iii. The plan also calls for the establishment of a Renewable Technical Center that to be co-located with the assembly facility. The facility would be used the train technicians, first responders, commercial driver’s license qualifications for buses and heavy-duty equipment, hydrogen purity testing lab, hydrogen cylinder testing, electrolyzer and fuel cell maintenance, bus maintenance, calibration services, etc.

iv. The main hydrogen storage and dispensing station would be located on the site together with ample parking for fleets of buses and heavy-duty County vehicles.

c. State whether the region is a considered a distressed community. Would the project(s) be on tribal land?

i. No, the region is not considered a distressed community nor is the project or future project on tribal land (undesignated). However, an Environmental

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Justice Analysis was performed for Hawaiʻi County which represents census block group environmental justice designations (Refer to Figure 10).

ii.

Figure 10

d. Describe environmental and ecological impacts of land use, resources use, and disposal/emission/recycling of process waste and equipment at end of life.

i. This is a light industrial activity and does not involve heavy industry such as steel production, cement production, hazardous and toxic materials waste disposal. There will be no significant environmental impact.

7. Please specify the job opportunities in the region that would be available because of the proposed project(s).

a. Indicate gross versus net jobs. i. The County’s workforce goal is to create and sustain more jobs. These

projects will bring significant job opportunities to the island of Hawaiʻi. The MTA base yard and training facility in Hilo will produce 240 direct

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construction jobs and will add at least 877 jobs to the local economy4. This estimate is conservative.

b. Indicate the sustainability of the jobs. i. The transition to hydrogen will catalyze innovations, such as for example a

hydrogen dirigible manufacturing center; see the section below related to science and innovation needs and challenges. These well-paying jobs will be in-demand and critical to serving the new hydrogen-based economy. The training, manufacturing, and maintenance facility will serve the needs of the public transportation fleet as well as private fleets.

c. Indicate the number of jobs required for installation versus subsequent maintenance, manufacturing, or other ongoing service jobs in the region.

i. By supporting public transportation, important union jobs will be protected and provide highly trained maintenance staff necessary to ensure the safety and effectiveness of the public transportation system. This effort to support local union jobs is aligned with President Biden’s American Jobs Plan goal to create good-quality jobs that pay prevailing wages in safe and healthy workplaces while ensuring workers have a free and fair choice to organize, join a union, and bargain collectively with their employers. The plan also will ensure that Americans who have endured systemic discrimination and exclusion for generations finally have a fair shot at obtaining good paying jobs and being part of a union5. The training facility will include the University of Hawaiʻi’s Hawaiʻi Community College in Hilo and the University of Hawaiʻi at Hilo, a minority serving institutions that prepare the local workforce for jobs of the future. Both institutions have a combined fall 2021 enrollment of over 3,000 students6. Job categories will include maintenance, manufacturing, administrative, and training. This will be a center of excellence that provides the County with a new green industry.

4 2023 multipliers from the Department of Business Economic Development & Tourism, 2017 State Input-Output-Study http://dbedt.Hawai’i.gov/economic/reports_studies/2017-io/ 5 Fact Sheet. The American Rescue Plan (2021), The White House https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/ 6 University of Hawai’i Institutional Research & Analysis Office https://www.Hawai’i.edu/iro/

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d. Indicate any opportunity zones in the region, including tribal lands, Historically Black Colleges and Universities (HBCUs), or other minority serving institutions.

i. There is a bordering opportunity zone to the HNEI Hydrogen Station at census tracts 215.04 and 216.01 in the Kailua-Kona area (Refer to Figure 11a).

• The bordering opportunity zone is the HNEI Hydrogen Station at census tracts 215.04 and 216.01 in the Kailua-Kona area (Refer to Figure 11a).

• The MTA Baseyard is currently in an opportunity zone as it is in Census Tract 206, adjacent to three additional opportunity zone census tracts: 203, 204, and 205 (refer to Figure 11b).

Figure 11a

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Figure 11b

• The HNEI hydrogen station is in the Kealakehe’La’i ‘Opua Region containing Department of Hawaiʻian Homelands (DHHL) property (refer to Figure 12)7. These lands are designated for various land use categories including commercial, community use, conservation, general agriculture, industrial, and residential, and to qualify for a new lease on Hawaiʻian Homelands, an individual must be at least 50% native Hawaiʻian.

7Kealakehe’La’i ‘Opua Region containing Department of Hawaiʻian Homelands (2020) https://dhhl.Hawai’i.gov/wp-content/uploads/2020/08/FINAL-Kealakehe-Laʻi-ʻŌpua-Regional-Plan-Update-May-2020.pdf

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Figure 12: Department of Hawaiʻian Homelands

• The University of Hawaiʻi (UH), a minority serving institution, has two

institutions close to both the HNEI hydrogen station as well as the MTA Hilo Baseyard, the UH Community College – Palamanui and UH – Hilo (refer to Figure 13a and 13b).

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Figure 13a

Figure 13b 8. Regarding environmental justice communities/neighborhoods that could make better use of

minority serving institutions, or could benefit DEI/underrepresented groups (URG) through internships or training opportunities, please identify:

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a. Any challenges or barriers that need to be addressed? i. Yes, currently training and internship opportunities are far and few between.

By building new facilities and importing kits, the hub can act as a school and training site to educate and offer skills training to community members (Refer to Section 6.b.i. for more information on kits and project).

b. Any opportunities or innovations that could be implemented that are relevant to advancing hydrogen technologies in these communities/regions for positive impact.

i. To be identified.

Science and Innovation Needs and Challenges

9. Please provide input on any fundamental science, basic or applied research, and innovation needs and challenges that may be required for, or be informed by, the demonstration projects. In addition, please identify scientific user facilities or computational tools that would provide the required innovations or resolve the remaining challenges.

i. HNEI Hydrogen Hub. Refer to Sections11c and 12a for discussions on how the HNEI Hydrogen Hub can be used to support this topic area.

10. Are there systems integration or prototyping facilities available or needed that could benefit the project and de-risk large-scale deployment? Please describe any testing facilities that could be used or are required.

i. Hydrogen High Pressure Cylinder Testing Facility. Large scale deployment of hydrogen requires thousands of very large high-pressure cylinders for stationary storage and hydrogen transport trailers. Cylinders must re-certify every five years. Hawaiʻi does not have a cylinder testing facility that can handle large cylinders and they must be shipped to the mainland for testing at great expense and lost time.

ii. Hydrogen Purity Testing Laboratory. Hydrogen must be certified that it meets purity standards before it is allowed to be used to fuel a vehicle. Hawaiʻi does not have a test lab that tests for hydrogen purity. Samples must be shipped to the mainland which is both expensive and time-consuming.

iii. The NELHA HNEI “Hydrogen Hub” Test Facility. The HNEI hydrogen station located at NELHA was specifically established to de-risk the large-scale deployment of hydrogen infrastructure heavy-duty hydrogen vehicles, specifically to transition the County of Hawaiʻi public transportation fleet of diesel buses to a fleet of fuel cell electric buses. The Hub will be used to familiarize the County of Hawaiʻi Mass Transit Agency in all aspects of operating a fleet of hydrogen buses. The site is also being used for public outreach to familiarize the public with the value proposition of converting public transportation to a zero-emission hydrogen bus fleet. This station was originally initiated with the vision, backed up by $2 million in seed funding, provided by the US DOE Hydrogen Fuel Cell Technology Office. This initial investment has leveraged significant additional financial investment of several million dollars in state funding to demonstrate the commitment of the state of Hawaiʻi in developing hydrogen infrastructure (“Skin-

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in-the Game”). The County of Hawaiʻi and State of Hawaiʻi have both made significant investments in procuring and upgrading three hydrogen buses with the latest state-of-the-art fuel cells and batteries. The “Hydrogen Hub” can be used as a test facility used to test, demonstrate, and introduce new emerging technologies for both Hawaiʻi and the mainland USA. Of particular interest is to test the ability of the equipment to stand up to a highly corrosive salt air environment. We will also use the program to introduce hydrogen at scale to Pacific Island nations who look to Hawaiʻi as a technology leader and example for setting up their own programs. Thus, there is considerable export potential in both equipment and technical know-how – both important for large scale deployment. Bringing in foreign students to learn about hydrogen supports our local community colleges and economy.

Additional Information

11. Please provide any other information that would be relevant to determining appropriate hydrogen demonstration projects and associated locations.

a. NELHA “Hydrogen Hub”. HNEI designed the NELHA Hydrogen Hub electrolyzer installation with a programmable control system that allows the electrolyzer to be ramped up and down as a variable load. This could be used to evaluate the durability of the electrolyzer over time if the electrolyzer was also being used to provide grid frequency control ancillary services.

b. Exporting Hydrogen at Scale to Oahu by Airship i. Oahu has a need for very large amounts of Green Hydrogen but lacks the

renewable energy resources to produce it in the quantities required. As the world moves toward clean hydrogen as an energy source, one of the key components of minimizing the cost of hydrogen is transportation expense. This is particularly true in the case of Hawaiʻi, where the low-cost renewable energy resources for producing clean hydrogen are located on the Big Island, and where the major market for clean energy is approximately 250 miles away on Oahu, with a 25,000-foot-deep ocean canyon in between. Fortunately, this logistical constraint has been solved by the H2 Clipper, an airship that is designed to transport massive quantities of liquified or gaseous hydrogen.

ii. The H2 Clipper is a patented technology. The company’s earliest issued patents were filed in 2008, when H2 Clipper founder and current CEO, Rinaldo S. Brutoco, filed for his first patent. Entitled “System, Method and Apparatus for Widespread Commercialization of Hydrogen as a Carbon-Free Alternative Fuel Source,“ the patent (U.S. Patent Number 8,336,810, (“810”) granted to Brutoco in December 2012) and the H2 Clipper’s numerous additional issued and pending U.S. and international patents correctly foresaw that trucks, trains, tanker ships and even pipelines are NOT the most economical means for transporting clean hydrogen from many of the places such as in Hawaiʻi, where clean hydrogen can be most economically produced from remote renewable energy sources, to where clean energy is most needed.

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iii. To address this challenge, H2 Clipper’s issued ’810 patent provides “a system for efficiently transporting hydrogen from where it can be economically made to where it is most needed using specially designed airships.” In addition to transporting either gaseous or liquified hydrogen as the airship’s payload, the ’810 patent discloses using hydrogen gas "for generating lift, providing propulsion energy and serving ancillary needs” meaning that the entire delivery system is 100% carbon-free.

iv. Concept engineering on the H2 Clipper (shown in Figure 14) has been completed, and as short as a 2-year window is estimated for completion of detailed design, preparation of shop drawings and construction of a 40% scale prototype, with full-sized production airships for use in hydrogen transport being capable of production before the end of 2026.

v. As shown in Figure 15, the flight path shown in the attached illustration will enable the H2 Clipper to transport carbon fiber wrapped cylinders containing gaseous hydrogen from the Puna geothermal production site at the south end of the island of Hawaiʻi and/or the areas that are ideally suited to large wind farms at elevation on the Island to a potential terminal location on approximately 25 acres of property in Oahu. The flight path is almost entirely over water and will not conflict with the existing airspace management of civil aviation. The airship has a vertical lift and landing capability and does not require an airport. Assuming an average cruising speed of between 150 and 200 miles per hour, a full-sized H2 Clipper will have a net payload potential of between 200 and 300 tons, thereby enabling each round-trip flight of 4 hours or less to transport approximately 10,000 kg of gaseous hydrogen at 3,625 psi from a landing site near the electrolyzer production location(s) on the Island of Hawaiʻi, to the distribution hub terminal on the Island of Oahu. Assuming five round-trip flights per day and 360 days operation per year, one H2 Clipper airship can transport 18 million kilograms per year of gaseous hydrogen to Oahu. As a modular technology, additional airships are added as required to meet the demand.

vi. The advantage of transporting gaseous hydrogen is that the tanks are stable for an extended period and already certified for transport on open roads and highways at either end of the journey using trucks such as the Titan-4 Hydrogen Transport Trailer shown in Figure 16, which has a total of 4 cylindrical tanks. The disadvantage of gaseous hydrogen is that the delivered hydrogen is a very small fraction of the total weight – less than 4%. In the case of the Titan 4 module, up to 16 of the trailers can be driven onto the H2 Clipper and held in the cargo bay (as shown in Figure 17, limited by weight, not by volume), but with the actual hydrogen weight being only 610 kg/module. This results in a total delivered payload of only 9,760 kg of hydrogen per trip even though the gross payload available is 264,500 kg. As a result, the net delivered cost for gaseous hydrogen is expected to range from

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$3.00 - $3.35/kg. This is a reasonable place to begin, but clearly much lighter gaseous hydrogen tanks will be required in order to reduce transport costs long-term.

vii. One option is to transport liquified hydrogen. This will result in a vastly higher mass of delivered hydrogen, which makes the economic case much more attractive. While it does introduce some technical challenges, these appear to be manageable using techniques employed by NASA and others for cryogenic hydrogen storage and transport, and has the advantage of reducing the net delivered cost for liquified hydrogen in significantly larger annual quantities than the above gaseous hydrogen amount to less than $0.20/kg, more than a 10x savings versus transporting gaseous hydrogen, and definitely consistent with Secretary Granholm’s Hydrogen Shot goals of $1 per kilogram within 1 decade.

viii. Industrial Benefits. Supporting the H2 Clipper fleet will require hangars (Figure 18) that could also be used to build airships in Hawaiʻi creating jobs to build both the hangars and the airships. Airships could be exported to other global markets including Pacific Island Nations and US Mainland.

Figure 14: H2 Clipper

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Figure 15: Hydrogen Delivery Routes

Figure 16: Hexagon Hydrogen Transport Trailer

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Figure 17: Hydrogen Transport Trailers Loaded in H2 Clipper Cargo Bay

Figure 18: H2 Clipper Maintenance & Production Hangar

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*Supporting Documents*

1. Refer to Hawaiʻi County Shared Use Mobility Roadmap (attachment)

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List of Abbreviations

AFLOU Agriculture, Forestry, and Other Land Use ASME American Society of Mechanical Engineers AWG Atmospheric Water Generation County County of Hawaiʻi DHHL Department of Hawaiʻian Homelands DOT Department of Transportation EA Environmental Assessment FCEV Fuel Cell Electric Vehicles FONSI Finding of No Significant Impact GHG Greenhouse Gas HAR Hawaiʻi Administrative Rules HNEI Hawaiʻi Natural Energy Institute HOST Hawaiʻi Ocean Science and Technology Park IPPU Industrial Processes and Product Uses MSW Municipal Solid Waste MTA Hawaiʻi County Mass Transit Agency NDC Nationally Determined Contribution NELHA Natural Energy Laboratories of Hawaiʻi Authority NFPA National Fire Protection association O&M Operations and Maintenance ORNL Oak Ridge National Laboratory OTEC Ocean Thermal Energy Conversion PGV Puna Geothermal Ventures RFI Request for Information SAF Synthetic Aircraft Fuel SP Sustainability Partners SRNL Savannah River National Laboratory UH University of Hawaiʻi