The State of Hawaii is aggressively encouraging the development of a renewable hydrogen-based business sector through supportive policies, generous tax credits, and the recently enacted Hawaii Renewable Hydrogen Program including funding support for the program in the form of the $10 million Hydrogen Investment Capital Special Fund. The program involves a wide range of technical and economic development activities that will leverage Hawaii’s abundant renewable resources, university expertise, and State funding support to develop a Hawaii hydrogen technology industry based on indigenous resources.

The State provides significant tax and other economic incentives, and business support, to encourage the development of high technology industry including innovative energy technologies:

• The Department of Business, Economic Development & Tourism (DBEDT) provides comprehensive business resource information to assist those who may be interested in doing business in Hawaii. For high technology industries including renewable hydrogen business or research, the State provides targeted incentives and services.

• The High Technology Development Corporation (HTDC) provides key resources to help develop and retain high tech in Hawaii.

Hawaii Renewable Hydrogen Program & Investment Capital Special Fund

In 2006, Act 240 SLH established the Hawaii Renewable Hydrogen Program within the Department of Business, Economic Development & Tourism (DBEDT) to support the increased use of Hawaii’s indigenous renewable energy resources using hydrogen as an energy carrier. Act 240 also appropriated the amount of $10 million for a hydrogen investment capital special fund for program development and investment.

State Grants

The Hawaii Small Business Innovation Research Grant Program was established in 1989 to provide grants to Federal Phase 1 SBIR awardees (up to 50%) of Phase 1 Award – maximum $25,000, for research that is performed in the State of Hawaii. HTDC also provides assistance in writing SBIR grant applications. Several high tech companies in Hawaii get their start through the SBIR program.

Federal Grants

The Federal Government is the major source of grants for hydrogen technology development, demonstration, and validation projects. These programs are national in scope and highly competitive.

Here is a link to more information on Hawaii Incentives and Laws – US DOE

Hawaii Renewable Hydrogen Program & Investment Capital Special Fund

In 2006, Act 240 SLH established the Hawaii Renewable Hydrogen Program within the Department of Business, Economic Development and Tourism (DBEDT) to support the increased use of Hawaii’s indigenous renewable energy resources using hydrogen as an energy carrier. Act 240 also appropriated $10 million for a hydrogen investment capital special fund for program development and investment. It is intended that the fund will be deployed to:

• Develop a world-class renewable hydrogen program in Hawaii;

• Provide cost share for projects that will attract a significant amount of federal and private research and development activity to Hawaii; and

• Provide seed capital and investment capital for emerging Hawaii-based advanced energy technologies and technology companies.

These strategic investments will be made to foster the development of renewable energy projects and business in the State and leverage State funds with the ultimate objective objective to maximize the prospects of a viable and growing advanced energy technology sector in Hawaii. These relevant statutes are:

HRS 196-10 Hawaii renewable hydrogen program. There is established within the department of business, economic development, and tourism, a Hawaii renewable hydrogen program to manage the State’s transition to a renewable hydrogen economy. The program shall design, implement, and administer that include:

1. Strategic partnerships for the research, development, testing, and deployment of renewable hydrogen technologies;

2. Engineering and economic evaluations of Hawaii’s potential for renewable hydrogen use and near-term project project opportunities for the State’s renewable energy resources;

3. Electric grid reliability and security projects that will enable the integration of a substantial increase of electricity from renewable energy resources on the island of Hawaii;

4. Hydrogen demonstration projects, including infrastructure for the production, storage, and refueling of hydrogen vehicles;

5. A statewide hydrogen economy public eduction and outreach plan focusing on the island of Hawaii, to be developed in coordination with Hawaii’s public education institutions;

6. Promotion of Hawaii’s renewable hydrogen resources to potential partnered and investors;

7. A plan, for implementation during the years 2007 to 2010, to more fully deploy hydrogen technologies and infrastructure capable of meeting the island of Hawaii’s energy needs, including

8. Expanded installation of hydrogen production facilities

9. Development of integrated energy systems, including hydrogen vehicles;

10. Construction of additional hydrogen refueling stations; and

11. Promotion of building design and construction that fully incorporates clean energy assets, including reliance on hydrogen-fueled energy generation.

12. A plan, for implementation during the years 2010 to 2020, to transition the island of Hawaii to a hydrogen-fueled economy and to extend the application of the plan throughout the State; and

13. Evaluation of policy recommendations to:

    1. Encourage the adoption of hydrogen-fueled vehicles;

    2. Continually fund the hydrogen investment capital special fund; and

    3. Support investment in hydrogen infrastructure including production, storage, and dispensing facilities.

HRS 0211F-5.7 Hydrogen investment capital special fund.

1. There shall be established the hydrogen investment capital special fund, into which shall be deposited:

   1. Appropriations made by the legislature to the fund;

   2. All contributions from public or private partners;

   3. All interest earned on or accrued to moneys deposited in the special fund; and

   4. Any other moneys made available to the special fund from other sources.

2. Moneys in the fund shall be used to:
   1. Provide seed capital for and venture capital investments in private sector and federal projects for research, development, testing, and implementation of the Hawaii renewable hydrogen program as set forth in section 196-10 and;
   2. For any other purpose deemed necessary to carry out the purposes of section 196-10

The actual statutes can be found at HRS 196-10 and HRS 0211F-5.7

Federal Grants

The Federal Government is the major source of grants for hydrogen technology development, demonstration, and validation projects. These programs are national in scope and highly competitive.

The place to start is with the US DOE Hydrogen Program Home Page and specifically the “Hydrogen, Fuel Cells & Infrastructure Technologies Program: Multi-Year Research, Development and Demonstration Plan” which can be read or downloaded in pdf format. For those companies and institutions that are looking for Federal funding, this is the primary site for finding information of upcoming funding solicitations. US DOE Hydrogen Program

US DOE Hydrogen Program: Financial Opportunities

Visit this site often to keep informed of current opportunities. You can also sign up to be added to the automated contact list. Financial Opportunities

US DoD SBIR/STTR Programs: Department of Defense Small Business Technology Innovation Research: Technology Transfer

The Department of Defense (DoD) issues several Small Business Innovative Research (SBIR) solicitations each year and many of theor projects call for the development of hydrogen technologies. Subscribe to the DoD Listserv to receive notices of solicitations. Hawaii has a program that financially supports successful SBIR recipients. DoD SBIR/STTR Home Page

EPA: Business and Industry

The Environmental Protection Agency business opportunities. There may be some projects calling for clean energy solutions that could apply to hydrogen technologies. EPA Business Support Programs

USDA Cooperative Research

The US Department of Agriculture sponsors a number of projects that support the development of feedstocks for biofuels which could be used to produce hydrogen. You will need to be creative. USDA Energy Programs

National Defense Center of Excellence for Research in Ocean Science (CEROS)

CEROS seeks to advance innovative concepts and new approached to technology while fully leveraging existing facilities and infrastructure in Hawaii and demonstrating beninficial utility for the Department of Defense (DoD). CEROS solicits proposals through annual competitive solicitations. CEROS

Here is a link to more information on grants. Federal R&D Funding

Other Resources