Jan 12 2011
Hawaiian Electric, which is a subsidiary company of HEI, has entered into a contract to provide a biofuel, which is processed from locally grown sources for generation of electricity in Hawaii. This contract was signed for a company, Aina Koa Pono (AKP).
The project would supply biofuel to Keahole Power Plant in the Ka’u region. According to Robbie Alm, Executive Vice President of Hawaiian Electric, the island of Hawaii gets about 30% of its energy from renewable sources currently, and as the renewable energy needs were estimated on a consolidated basis for the service territories of Hawaii Electric, Oahu and Maui have also greatly benefited. Alm further stated that this was the first contract granted after a call had been given for locally grown and processed biofuels in April 2010, which was to be used in the power plants in the Hawaiian region. He also said that the AKP team had given an excellent proposal and were also ready to negotiate keeping the best interests of Hawaii Island and the state in mind.
The contract was a significant step for reaching Hawaii’s clean energy target of 70% electricity from clean renewable sources by 2030. As per the AKP contract, the utility would purchase a huge quantity of local biofuels, which would help power generating units to achieve energy independence, decrease the susceptibility to oil price changes and also spend money locally instead of overseas. They would also be demonstrating to the local landowners that Hawaii Electric is dedicated to using local fuels and creating a practicable business model for growing agri energy crops in Hawaii. One added advantage for the renewable liquid biofuels was that they could be transported easily anywhere in Hawaii. This contract would be effective after approval is obtained from PUC. AKP would provide 14 million gallons in 2014 and then 16 million gallons in 2015 and continue to supply the same for the next twenty years. The biofuel would comply with Hawaiian Electric and Natural Resources Defense Council specifications and used mainly at the Keohole Power Plant.
Source: http://www.heco.com/