The Promise of Geothermal in Hawaii - A conversation with geologist Eric Peterson CEO of Honua Resources. A new energy start-up company.
Eric Peterson, CEO of Honua Resources - As a geologist prospecting in Nevada
Eric Peterson is the CEO of Honua Resources, a geothermal start up. He is interested in prospecting for geothermal energy in Hawaii. He has many years of experience as a geologist in the oil industry. He believes that the future of Hawaii lies with its greatest asset volcanic heat. Here are interview questions and answers Eric sent to me about Hawaii. The interview was conducted April 23, 2025.
Questions:
1. When you look at the Sub Surface world in Hawaii what does it tell you?
The subsurface world of Hawaii reveals tremendous geothermal energy potential due to its position on a geological hotspot. This creates conditions similar to Iceland, where geothermal energy provides 25% of electricity and 90% of heating needs. Iceland is a rift zone generated magma source and Hawaii is a traditional hotspot so a purest might disagree geologically but big picture are they are both islands that have accessible heat from drillable magma chambers (also you don't drill into magma chamber just deep enough down until its hot enough to access the heat but not fry up your well perhaps 300-600 degrees Farenheit roughly.
Current development includes Ormat's Puna Geothermal Venture (PGV) facility with 38MW capacity, but this represents only about 2.5% of Hawaii's estimated potential. Studies suggest the Big Island and Maui alone could support 1000-1500MW of geothermal power generation.
As a volcanic island chain situated over a mantle hotspot, Hawaii has access to high heat flux that could be harnessed for sustainable energy production, potentially reducing dependence on imported fossil fuels while providing reliable baseload power.
2. You have a unique background in Earth Science, having attended UC Santa Cruz and San Diego State for your Master's. What got you interested in going into the energy business, and how has your current Executive MBA experience at New York University's Stern School of Business, particularly the Berkley Entrepreneurship program, influenced your approach to the geothermal industry in Hawaii?
I never thought I'd end up in the energy business - I was actually planning to be a dentist! But after taking an Earth Science class at UC Santa Cruz, I became fascinated with understanding how the earth works, so I decided to drill for resources instead of drill teeth. I was hooked on the idea of exploring national parks like Yosemite or volcanoes like Kilauea and grasping the underlying geology. My master's thesis at San Diego State, sponsored by Chevron/CalTex, took me to Indonesia, where I studied the mountain formation of Java. That experience opened my eyes to the importance of geoscience in energy exploration.
As I transitioned into the geothermal industry, particularly in Hawaii, I realized that technical expertise was just one part of the equation. That's where my experience at New York University's Stern School of Business came in. The program is equipping me with critical business and leadership skills that are instrumental in my success. Being selected as a finalist in the NYU Stern Berkley Entrepreneurship program is a recent highlight of my time at Stern. Out of 150 companies, making it to the top 10 and receiving mentorship and training was invaluable. The program taught me how to turn innovative ideas into scalable businesses, and I've been able to apply those skills directly to my work in geothermal energy in Hawaii.
The combination of my Earth Science background and Stern's business acumen has been a powerful combination. I'm now able to approach the geothermal industry with a comprehensive understanding of both the technical and business aspects, allowing me to drive impactful decisions and contribute to the growth of renewable energy in Hawaii. The skills and network I've developed through Stern and the Berkley program have positioned me well to make a meaningful impact in this field.
3. Where did you do your first drilling?
While I supported drilling at SLB in oil & gas services my first 6 years in the industry the first well I drilled was in Arkansas around 2011 in the Fayetteville Shale that is a Natural Gas field we acquired at BHP from Chesapeake. I gained hands-on experience with the entire drilling cycle, including geologically mapping the location using nearby well data and seismic data, designing the well with 3D visualization software, obtaining permits and approvals from the Arkansas Oil & Gas Commission, directing drilling operations, and ultimately handing the well over to engineers for completion and connection to facilities, bringing the gas to market.
4. What gives you the greatest satisfaction when you do this kind of work?
What gives me the greatest satisfaction in my work with geothermal energy is knowing that it contributes to providing clean, reliable, and sustainable power that improves people's lives. Geothermal energy's minimal environmental footprint makes it an ideal solution for Hawaii's pristine landscapes.
Unlike traditional power plants, geothermal plants harness heat from the Earth's core to generate electricity with virtually no emissions or pollution. With most infrastructure located underground, geothermal plants preserve the natural beauty and air quality of sensitive ecosystems – much like hanging a flatscreen television on a wall while keeping the complex network of wires hidden behind it.
Geothermal energy is also a reliable source of power, operating 24/7. Unlike solar and wind power, which are intermittent, geothermal plants provide consistent baseload power. A 30MW geothermal plant can run continuously, providing stable electricity. In contrast, a solar plant of the same capacity would need to overproduce and store excess energy to meet demand during periods of low sunlight.
Another significant advantage is geothermal energy's cost competitiveness. With costs roughly half that of oil-based power, geothermal energy is becoming increasingly competitive with solar and wind energy. As technology advances, costs are expected to decrease further, bringing cost savings to Hawaiians who currently pay the highest electricity prices in the country.
As the world transitions to a cleaner energy future, geothermal energy will play a vital role. Its reliability, low cost, and minimal environmental impact make it an attractive solution. For me, contributing to geothermal energy's development is a source of great satisfaction, knowing it will improve people's lives and shape a more sustainable future. In Hawaii, geothermal energy makes perfect sense as a key part of their energy mix.
5. How did you get the idea of starting your own company Honua Resources
After BHP sold its oil and gas assets to Woodside Energy to focus on minerals for electrification, I began exploring ways to apply my skills in a more meaningful way. I realized that my expertise could be used to make a positive impact on the environment. In the summer of 2024, I started focusing on Hawaii and discovered the perfect opportunity. I named my company Honua Resources, with 'Honua' meaning 'earth' in Hawaiian. As an earth scientist, it made sense to leverage the earth's natural resources to provide clean energy, and I'm excited to be working towards that goal.
6. What did you learn while working at Schlumberger and BHP about drilling that you could apply to your own company
During my time at Schlumberger and BHP, I gained valuable experience in drilling operations, well planning, and project execution. I learned about the importance of precise well placement, drilling optimization, and risk management. I also developed skills in using advanced drilling technologies and software, such as 3D visualization tools and drilling simulation models. These skills will be crucial in applying geothermal drilling techniques to Honua Resources' projects. Additionally, my experience working with cross-functional teams and managing complex projects will help me navigate the challenges of developing geothermal resources in Hawaii. Oil & Gas workers are the perfect candidates to transition to geothermal workers. It is essentially just exploring and producing heat instead of hydrocarbons. I'm excited to apply these lessons to drive innovation and efficiency in our future geothermal exploration, development and operations.
7. How would you approach drilling in Hawaii - You would bring your own rigs?
I am an early stage entrepreneur. I would first work with the community to educate them on geothermal and show Hawaii that they don't need to rely on the outside world for their energy needs they can produce energy from under their feet - the islands provide for the people. You can use mostly off the shelf equipment to do the whole process. The first step is to prove up potential sites and utilize local knowledge especially from the great work already done at the University of Hawaii. I would collect data and make informed decisions and do the proper permitting. Then a rig would come to drill an exploratory well if it proves a geothermal system you build the plant and this will give clean energy jobs to locals and a source of energy that will be essentially infinite and clean.
8. Why do you think the Trump administration would view this favorably
The Trump administration likes to drill baby drill and the Democrat side likes green so geothermal is the perfect bi-partisan solution. Costs for geothermal and new technologies are also making it more attractive. Geothermal is picking up “steam”!
9. How would you work with Sage Geosystems on this?
We are more early stage than Sage but they have been kind to us and supportive of our efforts. The IEA says that currently <1% of the world's power generation comes from geothermal but that is supposed to increase dramatically to 8% by 2050 so everyone working in geothermal needs to work together because there is more work than people to do it to meet this challenge. Sage has IP that a company like ours which is more exploration and production focused could license if the right geologic conditions exist. Honua Resources is data focused we gather the data to make informed decisions then choose the right well technology for the location of interest.
10. Ideally what would you envision happening - geothermal on each island, on military bases on Hawaiian Homes Lands
Could you describe what would make this a successful business venture in your mind?
Ideally, I envision a future where geothermal energy plays a significant role in Hawaii's energy mix, with potential projects on each island, including military bases and Hawaiian Home Lands. To make this vision a reality, it's crucial that state politicians provide supportive policies and regulations that encourage the development of geothermal energy. Financial support from local investors, state funding, and federal grants will also be essential in helping us overcome the high upfront costs associated with geothermal development.
Education and community outreach are also vital components of a successful geothermal venture. By educating the public about the benefits of geothermal energy, we can build a stronger understanding and appreciation for this clean and renewable energy source. This will enable us to work collaboratively with local communities, ensuring that their concerns are heard and addressed.
A successful business venture would involve developing geothermal projects that provide clean, reliable, and affordable energy to the people of Hawaii, reducing our dependence on imported oil and helping us achieve our goal of 100% renewable energy by 2045, as outlined in Project 2045. By harnessing the power of volcanoes, we can enhance the resilience and energy security of military bases, provide stable sources of power, and create cleaner jobs and cleaner air for the people of Hawaii.
11. Question: Why has geothermal been successful in New Zealand, especially for Māori, and what lessons might this hold for a place like Hawaii, perhaps for a company like Honua Resources seeking to work with local communities?
Answer: New Zealand has a thriving geothermal sector, particularly for Māori communities. The Māori have deep cultural and spiritual connection with their volcanic landscapes and they have maintained these places for generations through kaitiakitanga (guardianship). The success stems from these communities' growing participation and ownership in geothermal assets such as managing geothermal power stations through Māori-owned enterprises and trusts and through royalties and equity which are often reinvested in vital community development initiatives spanning education, health, and cultural programs. Furthermore, these projects generate local employment and foster Māori entrepreneurship across diverse sectors, all while increasingly integrating core Māori cultural values and prioritizing the protection of sacred sites through mandated consultation.
For a place like Hawaii, and a company such as Honua Resources seeking collaboration with local communities, several key lessons emerge from the New Zealand experience. Meaningful active listening to Hawaiian's concerns and aspirations, andincorporating their perspectives into the decision-making processes is critical, ensuring genuine engagement and the incorporation of community perspectives. Facilitating local ownership and co-ownership of geothermal ventures is crucial for allowing communities to directly benefit financially. Establishing equitable revenue-sharing agreements that provide long-term benefits for community well-being is also essential. Furthermore, integrating indigenous cultural values and traditional knowledge into resource management, recognizing the community's role as guardians, and addressing any historical injustices related to land and resource management are vital steps toward building trust and fostering successful partnerships.
Mahalo Eric.
For more information on how the US Department of Energy views geothermal energy - Eric suggests the following link to a DOE report
that was written prior to the last election.
https://liftoff.energy.gov/next-generation-geothermal-power/
