The problem is that local storage is local to the system the browser is running on because it's local to the browser not from where the files originated.
This means you'll have to deliver the data to the browser for it to store the data locally. Right now your data is located on your stick.
You have a couple of options:
1. Deliver the data to the browser to create your local storage database via javascript.
2. Use Rob W's answer and supply a portable browser (good idea Rob!)
I've made no assumptions how the data is stored in your .sql file. If it's actually SQL, you're out of luck. Localstorage is not a sql database.
Good Article on the basics of local storage in HTML5
http://diveintohtml5.info/storage.html