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KenGen Risks Losing Olkaria Geothermal Wells Over Licence Error

KenGen Risks Losing Olkaria Wells Over 18-Year Licence Blunder Kenya Electricity Generating Company (KenGen) faces a serious legal and operational risk at Olkaria after an error in the coordinates of its geothermal licence left part of the company’s wells, steam infrastructure and other assets outside its legally recognised area. The licensing mistake, made nearly two decades ago, remains unresolved despite the Ministry of Energy and Petroleum acknowledging the problem in 2017.  The dispute has raised questions about the security of KenGen’s investments, the government’s management of geothermal resources and the potential consequences for Kenya’s electricity supply. Olkaria is the country’s most important geothermal centre and accounts for the overwhelming majority of Kenya’s installed geothermal generation capacity.  Licence Error Exposes Strategic Assets The problem dates back to September 19, 2008, when the Ministry of Energy and Petroleum issued KenGen a licence covering ...

Geothermal Exploration on Hawaiian Home Lands

Geothermal Exploration on Hawaiian Home Lands: A Path to Energy Independence and Economic Empowerment

In a bold move that could reshape Hawaii's energy landscape and provide long-term benefits for Native Hawaiians, the Department of Hawaiian Home Lands (DHHL) announced plans to request $15 million from the state legislature for geothermal exploration. This funding, spread over three years, aims to investigate and identify geothermal resources across DHHL's trust lands statewide. Led by DHHL Chair Kali Watson, the initiative highlights geothermal energy's potential as a revenue generator to lower electricity costs for homesteaders, produce water through desalination processes, and fund essential home construction projects. "It’s actually a tremendous potential revenue source, especially considering the cost of electricity nowadays," Watson emphasized in recent statements.

This proposal comes at a pivotal time for Hawaii, where high energy costs and reliance on imported fossil fuels continue to burden residents. With the state's ambitious goal of achieving 100% renewable energy by 2045, geothermal power—stable, baseload energy derived from the Earth's heat—could play a crucial role. For Native Hawaiians, who have historically faced challenges in accessing affordable housing and economic opportunities, this exploration could unlock self-sufficiency. However, it also reignites debates over environmental impacts, cultural sensitivities, and community involvement. This article delves into the historical context of geothermal development in Hawaii, the potential benefits for DHHL beneficiaries, the environmental and social considerations, and the road ahead.

Historical Roots of Geothermal in Hawaii

Geothermal energy in Hawaii traces its origins to the islands' volcanic geology, particularly on the Big Island, where Kilauea and Mauna Loa create ideal conditions for harnessing subsurface heat. Exploration began in earnest in the 1960s, with early "wild-cat" wells drilled on the Kilauea East Rift Zone (KERZ). These initial efforts were modest and unsuccessful, but they laid the groundwork for more systematic studies.

The turning point came in 1972 with the launch of the Hawaii Geothermal Project (HGP) by the University of Hawaii's College of Engineering, funded by the National Science Foundation. This initiative aimed to assess the feasibility of extracting energy from volcanic systems. By 1976, the HGP-A well was drilled to a depth of 6,140 feet in the Puna district, becoming one of the hottest geothermal wells in the world at the time. It produced steam that powered a 3-megawatt wellhead generator from 1981 to 1989, demonstrating commercial viability with over 90% availability. Operated by Hawaiian Electric, this plant supplied electricity to the grid, marking Hawaii's first foray into geothermal power production.

Building on this success, private ventures emerged. In 1993, Puna Geothermal Venture (PGV), operated by Ormat Technologies, began commercial operations in the KERZ. By 2012, PGV expanded to 38 megawatts, providing about 20-30% of the Big Island's electricity at its peak. However, the 2018 Kilauea eruption buried parts of the facility under lava, forcing a temporary shutdown. PGV reopened in 2020, underscoring geothermal's resilience but also its vulnerability to volcanic activity.

Throughout this history, geothermal has faced setbacks. Early projects like HGP-A operated without adequate pollution controls, leading to hydrogen sulfide leaks and brine disposal issues in unlined ponds. Community protests in the 1980s and 1990s highlighted these problems, resulting in regulatory interventions by the EPA and state agencies. Despite these challenges, geothermal has proven its potential as a firm, renewable resource, unlike intermittent solar or wind.

Economic and Social Benefits for Native Hawaiians

For DHHL, which manages over 200,000 acres of trust lands for Native Hawaiian beneficiaries, geothermal represents a pathway to economic empowerment. Established by the Hawaiian Homes Commission Act of 1920, DHHL's mission is to rehabilitate Native Hawaiians through homesteading, but chronic underfunding has left a backlog of over 28,000 applicants waiting for land or homes. Geothermal royalties could address this by generating revenue for infrastructure and housing.

A 2014 opinion from Hawaii's Attorney General affirmed that DHHL is entitled to 100% of royalties from geothermal development on its lands, as these resources are part of the public trust dedicated to Native Hawaiian beneficiaries. This ruling stems from the Admission Act, Hawaii Constitution, and HHCA, ensuring proceeds benefit homesteaders directly. Watson's proposal envisions using these funds to subsidize electricity bills, fund water production via geothermal desalination, and accelerate homebuilding.

Broader benefits include job creation and energy security. PGV, for instance, employs locals and contributes to the economy through taxes and community programs. For Native Hawaiians, who often face higher poverty rates, geothermal could foster self-sufficiency. As one beneficiary noted, "If this does come to fruition, what benefits are Native Hawaiians gonna see? Is it life-changing benefits?" Proponents argue it could be transformative, reducing reliance on expensive imported oil and stabilizing rates.

Moreover, geothermal aligns with Hawaii's clean energy goals. Unlike fossil fuels, it emits minimal greenhouse gases during operation, aiding carbon reduction. For DHHL, owning or partnering in geothermal projects could mirror successful Indigenous-led models, like those in New Zealand's Maori communities, where geothermal supports cultural and economic revitalization.

Environmental Considerations and Mitigation Strategies

While promising, geothermal development raises environmental concerns, particularly in Hawaii's fragile ecosystems. Key issues include air quality, water contamination, and habitat disruption.

Hydrogen sulfide (H2S) emissions, a byproduct of geothermal fluids, have been a flashpoint. Early incidents at HGP-A and PGV led to evacuations and health complaints. Modern abatement systems, however, capture over 99% of H2S, converting it to elemental sulfur. Brine reinjection prevents surface pollution, though risks of induced seismicity or groundwater mixing persist.

Native forests, home to endangered species, could face fragmentation from roads and infrastructure. DHHL's plan emphasizes careful site selection, avoiding residential areas and archaeological sites. Potential exploration sites include Humu’ula near Pƍhakuloa, Kawaihae, and South Point on Hawaii Island, with possibilities on other islands. Advanced technologies, such as closed-loop systems, minimize environmental footprints by recycling fluids.

Climatic factors like rainfall and trade winds influence impact assessments. Studies show geothermal's overall ecological impact is lower than fossil fuels, with a small land footprint compared to solar farms. Nonetheless, ongoing monitoring, as in recent Puna water studies, is essential.

Cultural Sensitivities and Community Engagement

Geothermal touches on deep cultural chords for Native Hawaiians, many of whom view volcanoes as sacred embodiments of Pele, the goddess of fire. Past developments in Puna were seen as desecration, leading to protests and legal battles. DHHL's approach mandates beneficiary consultation and compliance with environmental laws. State Rep. David Tarnas noted, "This is not something that they are trying to sneak in... They’ve got to be supportive. Otherwise, we’re not going to do it."

Recent discussions emphasize equitable partnerships, ensuring Native Hawaiians lead in decision-making. This could involve community-owned models or revenue-sharing that funds cultural preservation.

Challenges Ahead

Opposition persists. Environmental groups worry about risks in volcanically active areas, while economic hurdles include high upfront costs and regulatory delays. The 2018 eruption highlighted vulnerabilities, though PGV's recovery shows adaptability. Inter-island transmission, once studied in the 1980s Hawaii Deep Water Cable project, remains unfeasible due to costs.

Funding the $15M request will test legislative support, especially amid competing priorities. DHHL must balance exploration with trust obligations, avoiding past mistakes like inadequate abatement.

Future Outlook and Conclusion

If approved, this exploration could confirm new resources, paving the way for expanded geothermal capacity. With advancements in drilling and environmental tech, Hawaii could reduce emissions and costs, benefiting all residents—but especially Native Hawaiians through DHHL. As one expert panel concluded, renewable energy like geothermal is vital for sustainability, with obstacles more regulatory than cultural.


Ultimately, success hinges on inclusive processes. By prioritizing beneficiary input, environmental protection, and equitable benefits, DHHL's initiative could mark a new era of energy sovereignty. For Native Hawaiians, it's not just about power—it's about reclaiming control over their lands and future. As Hawaii navigates this path, geothermal may prove a geothermal gift from Pele herself, if handled with respect.


Source: Hawaii News

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