Hawaiian Electric and Hawai'i BioEnergy form agreement
In Hawaii, Hawaiian Electric and Hawai'i BioEnergy have agreed on a deal that will see Hawai'i BioEnergy supply biofuel to Hawaiian Electric's Kahe generating station.
The Hawaii Public Utilities Commission (PUC) will now review the contract. If it is approved, Hawai'i BioEnergy will provide the power station with 10 million gallons a year of biofuel for power production.
Empty land on Kauai island will be used to grow the energy crops before they are converted into biofuel. Once this process has taken place, the fuel will be shipped to Oahu and consumed in Hawaiian Electric's facility.
The contract will last for 20 years, and within 48 months of PUC approving it will require a test delivery of 1 million gallons. The annual supply of the 10 million gallons will commence within 60 months of the consent.