The Big Island produced a lot of new lava rock this year, and some of it could be the raw material for a new local industry, according to a report commissioned by a state agency.

The report said there’s potential to commercially produce a versatile building material called basalt fiber — similar to carbon fiber and glass fiber from rock.

A production plant on Hawaii island costing $78 million could generate an average annual profit of $15 million over 30 years and employ 81 people earning $75,000 on average, said the analysis by California-based consulting firm SMA Inc.

But challenges also exist, including uncertainty over whether lava rock on the island is suitable for producing high-quality basalt fiber.

“Hawaii County is an ideal location for a basalt fiber manufacturing plant due to the ease of access to basalt and desire from the Hawaiian government to develop the nascent industry, however there are a number of risks and issues,” the report said.

The Pacific International Space Center for Exploration Systems, an aerospace center in Hilo operating under the state Department of Business, Economic Development and Tourism, commissioned the report from SMA after issuing a request for proposals last year.

The agency is exploring basalt fiber because it is seen as something that can be produced and used on the moon and Mars. Basalt, which is made up of varying levels of three minerals — plagioclase, olivine and pyroxene — is similar on the Big Island, the moon and Mars, according to the agency.

Basalt fiber can be made into durable fabrics, rebar, insulation materials and structural mesh. It can be used in place of nearly all applications that use asbestos and is more resistant to heat, abrasions, corrosion, vibrations and chemicals, according to PISCES. The fiber is produced by crushing, washing and melting rock, which is then extruded into fine filaments that can be made into different products.

SMA’s report said the worldwide value of basalt fiber production is estimated at $178 million this year and is expected to grow to $405 million in the next decade. The company said most basalt fiber is made in Russia and China. The report also identified plants in Austria, Ireland and one established earlier this year in North Carolina by the operator of the plant in Ireland.

SMA said U.S. producers can’t compete on price with plants in Russia and China, so they need to focus on quality, customer service and technology.

“Limited manufacturing capacity in the United States means there is an opportunity to establish a local champion to meet emerging needs for U.S. customers,” the report said.

In Hawaii, SMA suggested producing stringlike strands of basalt fiber instead of other products such as rebar because it has a broad customer base and it’s easier to produce, sell and export.

The company said that even with Hawaii’s high costs for labor, materials and energy, a plant could generate about $33 million in revenue and $15 million in profit annually over the long term.

Risks for a local plant include energy cost increases, labor cost and availability, community activist opposition, trade-war tariffs and currency rate fluctuations, the report noted. PISCES has determined that the mineral composition of lava rock on the Big Island can produce basalt fiber, but SMA said testing the strength of basalt fiber made from Hawaii rock hasn’t been done.

“None of these risks alone will break the business case, but taken together they could severely limit the viability of the venture,” the report said.