Bioenergy seminary

BIOENERGY OPPORTUNITIES
AT GAY & ROBINSON

E. Alan Kennett
President, Gay & Robinson, Inc.

Alan Kennett & Gay & Robinson
•

President and CEO of Gay & Robinson, Inc.

•

Gay & Robinson, Inc. is 7,500 acre sugar cane plantation and sugar mill located on the island of Kauai, Hawaii

•

G&R is one of only two remaining sugar operations in Hawaii, the other is HC&S on Maui.

•

G&R currently produces approximately 50,000 tons of raw sugar per annum. •

Highest yielding sugar plantation in sugar per acre, over 7 tons per acre per year

•

Sugar production shipped to C&H refinery in Crockett, CA for refining.

Hawaiian Sugar Cane

State Policy Support
• State Ethanol Blending Mandate – 10% ethanol as of April 2,
2006
• State Refundable Ethanol Production Investment Tax Credit
– $0.30 per gallon of capacity, 8 years, up to 15 MM GPY ($36
MM)
• Renewable Portfolio Standard requiring “green” energy
• Reduced motor fuel taxes for ethanol and biodiesel
• Price Preference for biodiesel in State contracts ($0.05)

Ethanol & Hawaii
• Importation of all Transportation Fuels
– 450+ MM GPY Gasoline
– $1+ Billion per annum flowing out of Hawaii from gasoline alone.
• Highest Gasoline Prices in US
– $0.25 - $0.35 per gallon above US West Coast
• Declining Agricultural Sector (Sugar)
– Good Potential for Ethanol Production
• Government Policy since early 1990’s has been to promote renewable energy sources and to lessen dependence on imported petroleum.

Year

2007 (proj)

2006 (proj)

2005 (proj)

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

US G allons

Gasoline Consumption
600

550

500

450

400

350

300

Decline in Sugar Cane Lands

180,000
120,000
90,000
60,000
30,000

04
20

02
20

00
20

98
19

96
19

94
19

92
19

90

0

19

Acres

150,000

Federal Policy Support
•

$0.10 per