Ulupono Initiative, the impact investment firm created in 2009 by eBay founder Pierre Omidyar and his wife Pam, marks its 10th anniversary this year. The company has been busy; as of the end of 2018, Ulupono has built up a $78 million-plus portfolio of projects to advance its ambitious agenda to make Hawaii more self-sustaining through large-scale investments in locally grown food, renewable energy and more efficient waste management.

The firm has invested in projects as diverse as open-ocean kanpachi farming, seawater air conditioning and a cooperative of ulu (breadfruit) growers that has increased commercial production of the Hawaiian staple. Most recently, Ulupono set up a partnership with Hawaii Energy to offer limited-time rebates for installing electric vehicle charging stations at workplaces and multifamily dwellings.

Much of the responsibility for Ulupono’s future investments will fall on Greg Gaug, an executive with a finance background who just assumed the title of senior vice president for investment and analytics as part of a corporate restructuring.

“I joined Ulupono because I wanted to utilize the skills and knowledge I have accumulated to try and make a difference,” Gaug said.

Sometimes making a difference can be difficult. Ulupono’s efforts to revive Hawaii’s once-thriving but now-moribund dairy industry through a new Kauai dairy farm encountered fierce pushback from the community as well as legal and regulatory challenges. Ulupono ultimately abandoned the project, while reportedly earning about $875,000 in tax credits. But not all was lost, Gaug said: “We made … significant investments in that property that will last well beyond the dairy,” including water infrastructure for irrigation that will improve the value of the land for farming, “whether that’s for dairy or for fruits and vegetables.”

Gaug, 38, an Akron, Ohio, native, “bounced around quite a bit before making Oahu home,” he said. “Having lived in several different places I can truly say that being on small islands in the middle of the Pacific definitely gives you a unique perspective.”

He met his future wife, who is from Kalihi, in San Francisco. They now live in Kailua with two young children and a third on the way.

“I really love doing what I’m doing, and hopefully creating a better community and world for my kids to inherit,” he said.

Question: How would you distinguish between investment strategies by Ulupono and those of the for-profit business sector?

Answer: It’s a common misconception that Ulupono Initiative is a nonprofit, which isn’t surprising because our mission to improve Hawaii’s sustainability comes first. As an impact investment firm, Ulupono invests with purpose, and we reinvest any returns back into the work.

Ulupono’s diverse portfolio comprises nonprofit, for-profit and social investments in mission-focused projects. These investments are selected because they facilitate sound, innovative, community-based ideas with the greatest potential to catapult Hawaii toward catalytic change.

Q: What do you envision as a sustainable model for electric vehicles (EVs) in Hawaii and supporting networks of charging stations?

A: The current challenge in supporting networks of charging stations is that electric vehicles (EVs) account for less than 1 percent of all light-weight vehicles on our roads (there are just under 9,000 plug-in vehicles), so it’s tough to get high utilization at any one station. However, the market is seeing 26 percent annual growth, so … increased use should make charging stations more financially viable. I think it will be a mix of private (charge at home), workplace (charge during the day), as well as convenient charging (commercial and retail), and corridor (location-based).

There are significant benefits if we can charge EVs during the day to capture peak solar power here in the state, so I really like the workplace charging option.

Q: If EV owners are willing to pay a fee for charger usage, why does government need to provide incentives to install them?

A: Our research indicated that 68 percent of EV owners are receptive to paying for charging. However, given the low utilization, it is challenging to recoup the relatively high upfront costs related to installing and operating a charging station. So government incentives in these early years can be very effective in encouraging property owners to make the investment. To be clear, the government incentives are not intended to cover 100 percent of the costs — the site owner is still investing out of their own pocket. I believe charging stations have the potential to be self-sustaining once we have strong EV penetration. I would still consider EVs an emerging market until it reaches about 10 percent of all cars on the road.

Q: What happens to batteries when they end their useful life (currently about 10 years)?

A: EV batteries end their “useful life” around 20-30 percent degradation, so they still have 70-80 percent capacity left. They are often repurposed into other solutions such as aggregated into a larger, utility-scale battery or used as a portable charging station as seen in Freewire. This extends their useful life for another 20-30 years. Though at some point, disposal could create a challenge, which is why a number of universities and companies are researching recycling technology. Right now recycling is technologically feasible but economies of scale are the challenge.

Q: How realistic is the goal of eliminating fossil fuels from ground transportation by 2045, a goal set by Hawaii’s four county mayors?

A: Honestly, I think it’s very realistic to eliminate fossil fuels from ground transportation. My only hesitation is due to the reality that the shift is reliant on vehicle turnover, which can take eight to 12 years. And to be clear, some folks will hold onto their gasoline vehicles (like collectors). However, in context, when the initial RPS (renewable portfolio standard) goals were set in 2008, not many people thought those were realistic. Then, over the last decade, the goals were increased to 100 percent and still at the time, there were many skeptics. Now, the discussion has turned to not IF but WHEN. I think if the same focus, energy and commitment can be put into ground transportation, we’d see similar momentum and confidence that this can be achieved.

Q: Realistically, what’s the outlook for mass public transportation converting to “green” systems?

A: The outlook is very strong. Electric buses are already in a number of municipalities. We recently had pilot buses on the roads here in Honolulu, and the counties are planning and evaluating how to best incorporate electric buses into their fleets. Unlike most consumers, public transit agencies really focus on total lifecycle costs and electric buses are very competitive over the life of the vehicle.

Q: Given cancellation of its plans to establish a Kauai dairy farm, does Ulupono still want to promote and/or invest in dairy farming in Hawaii?

A: We absolutely support a local dairy industry. Unfortunately I don’t think most folks realize that nearly all of our milk is now imported from California. By the time milk hits the shelves it might be as many as 20-30 days old. The recent milk shortage further highlights the need to support local agriculture and a local dairy industry. A significant portion of Hawaii residents relies on dairy — especially the very young and our elderly population who require it for its nutritional value as a whole food product. I want to give my kids fresh, healthy milk, so hopefully we can find a balance between being environmental responsible and supporting local ag, which we believe our sustainable Kauai dairy farm proposal encompassed.

Q: Does Ulupono have plans to invest in other agriculture-related ventures? If so, what are they?

A: We are always looking to support agriculture ventures that can provide large impact opportunities. We like controlled agriculture environments such as greenhouses or vertical agriculture. Though they may require more upfront capital, they reduce operational risk, plus require less land and water. But such operations must be scalable to make a difference in feeding Hawaii’s population and increase our self-sufficiency. Without being scalable, it’s just gardening.