Hawaii plans to unveil an updated state energy strategy next month that could include liquefied natural gas as a bridge fuel to its 100% renewable energy goal, officials say.

The Hawaii State Energy Office is putting the finishing touches on a study to be released in mid-July with details on how the state can reduce its sky-high energy costs, decarbonize more rapidly and seek access to capital, according to Mark Glick, state energy officer.

He said his office expects “critical cost and carbon analytical findings” that stem partly from its recent Decarbonization Pathways report that cautioned about the damaging effects of continuing to use low-sulfur fuel oil as the main fuel for power generation.

“It is clear, particularly post-Maui wildfires, that the status quo is no longer acceptable,” Glick said.

Oahu still relies on low-sulfur fuel oil to generate 68% of the island’s electricity. So LNG and other sources are all on the table, he said.

Part of the motivation seems to be coming from the economic toll the state’s biggest electric company is facing from the Aug. 8 wildfires on Maui.

The fires, which resulted in the loss of at least 102 lives, caused massive liability risk to Hawaiian Electric Co. from damage claims, Glick said. That has greatly limited the utility’s access to capital as well as the cost.

The increased financing costs for future projects by HECO for power generation, grid improvements and mitigation plans will likely be passed on to customers, driving up rates. Some projects may not be able to move forward, putting necessary projects as well as the pace of Hawaii’s energy transition at risk, according to Glick.

This heightens the need for a cheaper fuel source, possibly LNG, to control customer rates.

At last month’s Hawaii Energy Conference on Maui, Gov. Josh Green surprised many in the audience by saying LNG must be considered as a “bridge fuel” as the state transitions to 100% renewable energy by 2045 as mandated by state law.

Environmental advocates described the remarks as head-spinning since LNG, mostly made up of methane, is considered a climate-destroying energy source possibly dirtier than coal. Opponents have described it as a “bridge to nowhere.”

“My first reaction was shock,” Henry Curtis, executive director of Life of the Land, said last week. “If you’re switching to renewables, you don’t try to import another fossil fuel.”

The Biden administration in January temporarily paused new LNG export projects while the Department of Energy studies LNG’s impact in light of climate change, household energy costs and environmental justice factors, since LNG export facilities are often located in communities of color or low incomes.

Jeff Mikulina, executive director of Climate Hawaii, said he appreciates that the Green administration is considering all options for weaning Hawaii off fossil fuels. But as far as LNG, “it feels like a bit of deja vu,” he said last week.

Former Gov. David Ige ruled out using LNG as an energy source in Hawaii because it would only prolong the state’s dependence upon fossil fuels which emit greenhouse gases when burned and contribute to the global climate crisis.  

“We have to keep our eyes on the prize here which it 100% renewable, low-cost reliable energy future. Switching from one imported fossil fuel to another imported fossil fuel doesn’t make sense,” Mikulina said.

HECO remains neutral on LNG. A spokesperson has said the utility backs the energy office’s work to build a comprehensive inventory of sources that could be part of the state’s energy portfolio.