Hawaiian astaxanthin is grown in Cyanotech Corp ponds at the Hawaii Authority’s Natural Energy Laboratory. (File photo via Laura Ruminski/West Hawaii Today)
The deep seawater pipes leading to the OTEC tower can be seen at the Hawaii Authority’s Natural Energy Laboratory. (Laura Ruminski/West Hawaii Today)
A pipeline carries seawater to NEHLA’s tenants. (Laura Ruminski, Western Hawaii today)
Temperature-controlled seawater is pumped into abalone tanks at Big Island Abalone in NELHA. (Laura Ruminski/West Hawaii Today)
Companies at the Hawaii Authority’s Natural Energy Laboratory and Hawaii Ocean Science and Technology Park at Keahole Point contributed more than $90 million to Hawaii’s economy in 2022, according to research conducted by the University of Hawaii’s Economic Research Organization.
The report shows that the park’s overall economic impact was $145. 4 million in 2022. NELHA’s overall corporate expenses were $148. 4 million, of which approximately $90. 3 million was allocated to Hawaii entities in 2022.
NELHA’s economic impact on the state economy expanded significantly from 2018 to 2022, with total output rising from $120 million in 2018 to $145 million in 2022.
Revenues, tax revenues, and employment expansion increased by 28%, 25%, and 20%, respectively, during this period.
The 870-acre facility has 49 tenants who are engaged in emerging renewable energy, aquaculture and other sustainable ocean-based technologies.
Three sets of pipelines deliver cold deep sea water from up to 3,000-feet deep, as well as warm pristine surface seawater utilized by the tenants. The state has invested over $100 million since 1974 to create the site located adjacent to Wawaloli Beach Park.
NELHA Executive Director Gregory Barbour said the self-sufficient state agency collected $2.3 million in land rent in fiscal year 2023, a 9% increase from the previous year. Cumulative base rent increased by approximately $200,000 or 10% based on new leases in 2023, with four more companies potentially leasing space after having obtained approval in concept from the board.
NELHA controlled more than $20 million in projects in 2023. De this amount, $5. 4 million came from special funds, $7. 7 million from federal grants, and $7. 3 million from capital improvement projects.
“Over the past 10 years, NELHA has received an average of $2 million per year through appropriated capital improvement project funds for site development. As such, the state’s return on investment is very high, as each dollar of state expenditures toward NELHA results in over $62.2 of output generated in Hawaii’s economy,” said Barbour.
“We continue to see success from our investments in science and technology, and this data regarding NELHA confirms this,” said Gov. Josh Green in a prepared statement. “We have world-class assets and additional investments in marine sciences, and leveraging our state and UH assets will help accelerate growth in our blue economy in the areas of food security, ocean technology, ocean conservation and ocean energy. It will also increase cohesion with efforts being carried out by other Pacific Coast states.”
The report estimated state tax revenue generated by NELHA was $7 million in 2022.
The research also found that on-premise businesses employ a lot of people, with spending contributing a total of 714 jobs to the Hawaiian economy in total in 2022. This equates to approximately 8 jobs created for every million dollars spent at NELHA.
“NELHA is part of the state’s economic diversification plan, and we continue to anticipate and plan for further expansion in other spaces of the blue economy,” said James Kunane Tokioka, director of the Ministry of Business, Economic Development and Tourism. “The long-term NELHA is full of opportunities that will lead to the strengthening of our communities and the economy of the island of Hawaii and the state.