You wouldn’t think an electrical engineer with an MBA in accounting, financing and management would be obsessed with algae, photosynthetic organisms, such as seaweed and kelp. But Edward Shonsey is proud to be part of a project providing solutions for renewable energy using exactly that blue-green slime we see in water.

As the new CEO of HR BioPetroleum, Shonsey is leading a team of scientists growing algae using CO2, sunlight, water and temperature to create biofuel. In a joint venture with Alexander & Baldwin, Hawaiian Electric and Maui Electric, the company is developing a commercial-scale microalgae facility on Maui to produce lipid oil for conversion to biodiesel and other valuable products, such as animal feed.

Shonsey’s diverse career includes tenures at Western Electric, Proctor & Gamble, where he helped start up a small paper company called Charmin Paper Company that transitioned into the largest division of Proctor and Gamble, and Pioneer Hi-Bred International, one of the leading agricultural seed companies in the world.

The ideal of standing up for something you believe in was passed down from his mother and father, both teachers, and that is what has drawn Shonsey to environmental advocacy and the search for energy solutions. “I think John F. Kennedy once said ‘I am an idealist without illusions’, so I tend to believe that we can all strive for something better and to provide a solution, but at the same time we can do it in a very practical engineer-like way,” says Shonsey.

Pacific News Bytes asked Shonsey to share his thoughts on renewable energy and its role in Hawaii’s environmental protection…

How did you get started in the biofuel business?

My involvement and passion to develop third generation biofuels is a result of 20 years of experience in the commercialization of agricultural products & specialty enzymes, due diligence to find a team and technology which will make the dream of a sustainable alternative fuel into reality and a bit of serendipity. Each of us in our own small way can help change the world we live in and this is my niche. The serendipity part of the formula resulted from the two scientific founders of HR Biopetroleum asking me in early 2008 to accept the CEO role and bring their vision to the marketplace. I had been developing solutions for cellulosic ethanol, so I was aware of the good, the bad, and the ugly aspects on the road to success. HRBP possessed the proven and environmentally safe technology to accelerate development. They also were in the final stages of aligning strong strategic partners including Shell Oil, University of Hawaii, and CEROS of Hawaii, so my engineering curiosity said “Go for it!”

What are some of the latest developments at HR BioPetroleum?

Progress at HRBP has been strong and steady. We are successfully addressing algae strain development and optimization with our partner Cellana, as well as designing the upstream and downstream components to build our first commercial plants. In addition, we are partnering closely with community and industry leaders to complete our first commercial plants, including HECO/MECO, for a plant beside the Maaleaa electric power plant on Maui which was announced in July 2008. Our technology is unique and patented. We are applying this technology to mitigate the CO2 stack gases from power plants, cultivate proprietary natural algal strains resulting in algal oil and biodiesel which will in turn power the electrical plants. This approach enables Hawaii to become self reliant, reduces the cost of electricity for everyone, while at the same time helps to clean up our environment.

What are HRBP’s goals for energy solutions?

HRBP is positioned to be the leading company to make large-scale algae-based feed stocks a commercial reality in the next 3-4 years. Our goal is to be the best integrator of proven technologies and processes to provide bioenergy solutions, while simultaneously improving our environment. We have a proven process that has been validated at pilot scale for over 10 years. We have a strong intellectual property estate consisting of issued patents, patent applications, and proprietary know-how. Most importantly we have an accomplished team of scientists and managers with the intent and ability to build a capable team of talented professionals and develop a portfolio of profitable, large-scale, commercial algae facilities.

What types of energy solutions do you see for the future?

I believe in the power of science and the power of creativity. I also believe a mosaic of energy solutions will be required to meet our global needs. Henry Ford’s use of corn starch ethanol was a small biofuel stepping stone that will still be a minor part of the mix for some geographies. Cellulosic ethanol will become reality in a few years to address some transportation needs. Solar, wind, and nuclear power will also be a part of the solution for energy needs. In fact, a solar powered automobile was introduced this year. Algae solutions can play a huge role. As an example, approximately 150 billion gallons of biodiesel could meet all the transportation needs of the United States annually using the existing transportation infrastructure. This amount can be met with 8 to 10 million acres (less than 2% of landmass and compared to 95 million acres of corn grown annually) of algae plant production using non agricultural land, not requiring fresh water or competing with food crops. The capital dollars required to do so would have a one year payback based on what the U.S. pays annually for the importation of fossil fuel. This gives the U.S. opportunity to be energy self reliant. The technology to do so is knocking on the door; we just need the courage to open it!

What do you see as some of the major energy issues Hawaii is Facing?

Hawaii’s energy needs continue to change and increase. Hawaii needs to implement its master plan to address this. The Hawaii Clean Energy Initiative links to this. I know the desire and talent are there to do so. HRBP wants to be a part of that master plan. Hawaii is respected throughout the world for its initiatives toward alternative energy policies. An example is Hawaii being the first state to require solar water heaters in new homes- signed into law June 26, 2008. Hawaii relies on imported fossil fuels more than any other state, with about 90% of its energy sources coming from foreign countries, according to state data. HRBP will supply a new source of energy via algae to power Hawaii’s power generation using natural strains of algae, produced in Hawaii, and mitigating CO2 from Hawaii’s air. Hawaii’s drive for self reliance will therefore be accelerated because of HRBP’s partnering with those making change happen. I expect Hawaii will continue to lead by example and HRBP wants to be part of that example especially to meet Hawaii’s mandate of 20% renewable energy by 2020.

How has biofuel changed and adapted?

Biofuel technology has changed dramatically in the past five years. Innovation, perseverance, economic and environmental pressures, as well as the harmonization of biology with biotechnology have caused this change. What we are able to accomplish technically was not possible a decade ago. Enzymatic discovery and optimization will enable cellulosic ethanol to become a viable source of fuel. Hydrogen and solar power are being tested and will become economical in the future just as we found with the development of calculators. Most importantly what could not be accomplished by government organizations with algal oil a decade ago is now ready for prime time—both for land transportation and for jet fuel. Fossil fuel will not be totally replaced but together we can capture alternatives and strive toward economic and environmentally self reliant fuels. People are responding positively to it, but are understandably concerned about protecting the food supply and the environment. We are all balancing this with what we ultimately must pay at the gas pump. I share those concerns and that is why I am so energetically pursuing the solution that HRBP provides. I recently met a young woman on Oahu who was passionate about her career teaching fifth graders. In our conversation I shared what we are working towards at HRBP. She became very excited about the possibilities and asked a lot of questions. We ended by both being convinced that education is an important part of the process to help the community support this alternative. As a result, we both agreed to be change agents through our spheres of influence. She went on to tell her fifth graders that there are alternative solutions to the problems in energy and I went to my team to tell them not to let her and the children down!

Describe a typical work day.

My day usually begins at 4 or 5 am when I do some of my best analysis without interruption. My engineering background compels me to write down at least three of the most important things I need to accomplish that day. I usually go out for a run by the ocean to clear my mind and reflect on our remarkable world. This helps me keep in perspective how important it is to consider what we do to our environment as a legacy to our children. By about 7 a.m. the fun really starts with international and domestic calls and meetings. Since our strategic partners span the globe so too does our time frame for meetings and updates. With each day’s craziness though I do take time to remember what I learned from a wise person—to take time to think, believe, dream, and dare to make happen what I believe is important.

What has been the best life lesson you have learned?

Two experiences come to mind which guide my daily life. Once while in combat operations in Vietnam at 2 am in the morning, we were under fire, not knowing if we would survive. I resolved then that if I was alive in the morning, I would value each and every day as a gift. I try to remember that promise particularly when things don’t go according to my plans! The second relates to running my first marathon. As predicted I hit the emotional and physical wall at the 20-mile mark, pushed through it and finished the race. I learned in this grueling process that a person can do anything even though physically or mentally exhausting, if in fact he/she believes they can do it, prepares accordingly, and focuses on the goal.

Who has been your biggest influence? Why?

My parents, both teachers, sacrificed financially to provide a Jesuit education for me—14 years worth! The Jesuit priests, though tough, inspired me through their commitment to the values of ethics, intellectual curiosity, discipline, and respect for cultural diversity. Through my personal life and years in business these have been wonderful guiding principles to keep me on course.

What do you enjoy most about your job?

I am excited about the work our team is doing. No one yet has successfully commercialized this technology, so our team is creating a legacy versus managing someone else’s. The opportunity to bring value to our investors and at the same time improve our environment is somewhat unique—empowering us to do good, yet also do well for those involved. It requires flexibility, creativity, perseverance, mutual respect, and balancing of risk.

What do you enjoy least about your job?

During my career I have traveled extensively globally. At one time I was responsible for 120 different countries so spent 90% of my time on an airplane. Less airplane time and more time focused in a few places would be great!

What is the biggest challenge of your job?

The biggest challenge of my job is the timing of our projects combined with the sense of urgency to move forward. We know and understand the science and we know how to integrate the required technologies and processes to obtain success. At the same time this is a unique, new, and impactful solution for bioenergy and the environment. It therefore appropriately requires regulatory and environmental impact approvals. Every state and municipality is somewhat different in the timing needed. Some require days, some months, and some years. The magic therefore lies in parallel planning and timelines for implementation.

What is the most important thing to remember to stay competitive in the biofuel industry?

The vision of what can be and its price/value relationship must always be there to provide consistent progress. Biofuel is such a huge opportunity and need, that it is not the number of competitors but rather understanding their ability to combine discovery with economic ramp up capabilities. Additionally, the half life of biological and biotech science now is months versus years, so innovation must always be a top priority for any company- and that means making sure you have the best minds with the same passion to succeed.

If you were not in the biofuel field, what other profession or career would you pursue?

There is so much to experience in life. At this point I would have fun being either a jazz pianist or a scientist teaching biology and helping guide young people’s careers.

What do you like to do in your spare time?

I like to improve my language skills, concentrating on Spanish, French, and Mandarin. My grandmother taught me to fly-fish and I have been enjoying it for many years in a variety of locations. I just bought a kayak and am headed to the San Juan Islands in the Pacific Northwest to break it in!

Please tell us something unique about myself.

My diversity of cultural experience can be extreme. I sit on the Board of the Foundation of Liechtenstein at the request of the royal leader of the country, whose family has ruled since the 11th century. On the other hand I spend a good deal of time with my family, consisting of our three children and extended family of 24 brothers and sisters in-law (my wife is from a Midwest family of 13 and my Colorado family had 7) who don’t hesitate to give me sensible advice. Although culturally diverse, these two families have much in common, relying on values of love, respect for others, intellectual curiosity and faith. We are all more alike than different. This keeps me both challenged and grounded.