 |
| Location of proposed biofuel processing plant site is the truck shed where ML Macadamia keeps and maintains its equipment. |
HAWAIIAN ELECTRIC COMPANY signed an agreement yesterday with `Aina Koa Pono to provide processed biofuel for electric generation. The biofuel would come from processing trees like eucalyptus and Christmas berry, starting with Ka`u.
It would also come from crops grown on 13,000 acres between Pahala and Na`alehu. The wood chips and other agricultural materials would be delivered to a processing plant, which `Aina Koa Pono plans to locate within Pahala Village.
The biofuels plant would initially truck biofuel to Keahole Power Plant in Kona but could also ship it to to other Hawaii Electric plants in the state. It would also be able to accept chipped trees and other feedstock for its processing plant in Pahala from other sources on the Big Island and around the state.
“This is the first contract awarded as a result of our call in April 2010 for locally grown and processed biofuels to be used in our power plants on Hawai`i Island, O`ahu and in Maui County,” said Robbie Alm, Hawaiian Electric executive vice president.
“The team at `Aina Koa Pono submitted an excellent proposal and was prepared to negotiate with the best interests of the state and Hawai`i Island at heart,” said Alm.
Alm said the contract is an important step in reaching Hawai`i’s clean energy goal of 70 percent of electricity and transportation energy from clean sources by 2030. The project complements Hawaiian Electric’s plans for adding significant amounts of renewable energy from other sources, including solar, wind, garbage-to-energy, biomass, geothermal, ocean and others, he declared.
Under the AKP contract, the utility would:
• Buy a significant quantity of local biofuels for generating units to increase energy independence, spend energy dollars locally and reduce vulnerability to volatile oil prices.
• Signal to landowners and agricultural interests that Hawaiian Electric companies are committed to using local fuels and are signing contracts that create a workable business model for agricultural energy crops to emerge in Hawai`i.
• Because liquid fuels are transportable, create a renewable fuel supply for firm power that can be used anywhere in Hawai`i.
“This contract moves us forward on Governor Abercrombie’s ‘New Day’ plans for energy independence, on compliance with the aggressive Renewable Portfolio Standards now in state law and on our promises in the Hawai`i Clean Energy Initiative agreement,” Alm said.
The plan is subject to approval by the Public Utilities Commission.
The request to the Public Utilities Commission asks for the PUC to spread among customers of Hawai`i Electric Light Company, Maui Electric Company and Hawaiian Electric Company the difference between the price of locally grown and produced biofuel and the fossil fuel it replaces.
Based on December 2010 fuel costs, this would add less than 1/3 of a cent per kilowatt-hour, or $1.55 to $1.86 per month, to a typical residential customer bill (typical residential use varies between 500 and 600 kilowatt-hours a month) for Hawai`i Island, Maui County and Oahu customers.
“This contract provides for potential future delivery of AKP biofuels to other islands, making it reasonable that all customers join in paying the initial incremental cost as this facility gets up and running. Fossil fuel oil prices are expected to continue their erratic climb, so in time the cost of AKP biofuel is expected to be less than the cost of the oil it displaces,” Alm said.
“Hawai`i Island already has the highest level of renewable energy in the state, getting more than 30 percent of its energy from renewable sources. Renewable energy requirements are calculated on a consolidated basis for the Hawaiian Electric companies’ service territories, so Maui and Oahu have benefitted from Hawai`i Island’s leadership,” Alm said.
Other terms of the AKP contract include:
• It is effective from and contingent upon PUC approval.
• AKP will provide 14 million gallons per year in 2014, increasing to 16 million gallons per year in 2015 for a total of 20 years.
• The processing is restricted to feedstock grown on Hawai`i Island, with conditional allowances for feedstocks from elsewhere in Hawai`i.
The biofuel will meet Hawai`i Electric Light Company specifications and be used primarily at Keahole Power Plant in West Hawai`i, with flexibility for delivery to other generation stations on Hawai`i Island, O`ahu and in Maui County.
`Aina Koa Pono wants to put its processing plant at the old truck shed area of the former Pahala sugar mill, which is currently being used by ML Macadamia for its macadamia farming equipment.
The biofuels plant would initially truck biofuel to Keahole Power Plant in Kona but could also ship it to to other Hawaii Electric plants in the state. It would also be able to accept chipped trees and other feedstock for its processing plant in Pahala from other sources on the Big Island and around the state.
“This is the first contract awarded as a result of our call in April 2010 for locally grown and processed biofuels to be used in our power plants on Hawai`i Island, O`ahu and in Maui County,” said Robbie Alm, Hawaiian Electric executive vice president.
“The team at `Aina Koa Pono submitted an excellent proposal and was prepared to negotiate with the best interests of the state and Hawai`i Island at heart,” said Alm.
Alm said the contract is an important step in reaching Hawai`i’s clean energy goal of 70 percent of electricity and transportation energy from clean sources by 2030. The project complements Hawaiian Electric’s plans for adding significant amounts of renewable energy from other sources, including solar, wind, garbage-to-energy, biomass, geothermal, ocean and others, he declared.
Under the AKP contract, the utility would:
• Buy a significant quantity of local biofuels for generating units to increase energy independence, spend energy dollars locally and reduce vulnerability to volatile oil prices.
• Signal to landowners and agricultural interests that Hawaiian Electric companies are committed to using local fuels and are signing contracts that create a workable business model for agricultural energy crops to emerge in Hawai`i.
• Because liquid fuels are transportable, create a renewable fuel supply for firm power that can be used anywhere in Hawai`i.
“This contract moves us forward on Governor Abercrombie’s ‘New Day’ plans for energy independence, on compliance with the aggressive Renewable Portfolio Standards now in state law and on our promises in the Hawai`i Clean Energy Initiative agreement,” Alm said.
The plan is subject to approval by the Public Utilities Commission.
The request to the Public Utilities Commission asks for the PUC to spread among customers of Hawai`i Electric Light Company, Maui Electric Company and Hawaiian Electric Company the difference between the price of locally grown and produced biofuel and the fossil fuel it replaces.
Based on December 2010 fuel costs, this would add less than 1/3 of a cent per kilowatt-hour, or $1.55 to $1.86 per month, to a typical residential customer bill (typical residential use varies between 500 and 600 kilowatt-hours a month) for Hawai`i Island, Maui County and Oahu customers.
“This contract provides for potential future delivery of AKP biofuels to other islands, making it reasonable that all customers join in paying the initial incremental cost as this facility gets up and running. Fossil fuel oil prices are expected to continue their erratic climb, so in time the cost of AKP biofuel is expected to be less than the cost of the oil it displaces,” Alm said.
“Hawai`i Island already has the highest level of renewable energy in the state, getting more than 30 percent of its energy from renewable sources. Renewable energy requirements are calculated on a consolidated basis for the Hawaiian Electric companies’ service territories, so Maui and Oahu have benefitted from Hawai`i Island’s leadership,” Alm said.
Other terms of the AKP contract include:
• It is effective from and contingent upon PUC approval.
• AKP will provide 14 million gallons per year in 2014, increasing to 16 million gallons per year in 2015 for a total of 20 years.
• The processing is restricted to feedstock grown on Hawai`i Island, with conditional allowances for feedstocks from elsewhere in Hawai`i.
The biofuel will meet Hawai`i Electric Light Company specifications and be used primarily at Keahole Power Plant in West Hawai`i, with flexibility for delivery to other generation stations on Hawai`i Island, O`ahu and in Maui County.
`Aina Koa Pono wants to put its processing plant at the old truck shed area of the former Pahala sugar mill, which is currently being used by ML Macadamia for its macadamia farming equipment.
`AINA KOA PONO also put out a press release yesterday, explaining that its name means, in Hawaiian, “For the Good of the Land.” The company says it will invest approximately $320 million dollars into the Ka`u Energy Farm to cover the costs of building a cutting-edge processing facility as well as planting and harvesting biofeedstocks including sweet sorghum and eucalyptus.
The press release says that another goal for the Ka`u Energy Farm is to integrate land use for fuel and food agriculture to enhance – not harm – Hawai`i’s environment. `Aina Koa Pono promises to support existing and new local food-related operations including cattle ranchers, coffee producers, more macadamia nut farmers and tropical fruit producers by providing a market for and processing non-food by-products such as green waste into usable liquid fuels. In addition, `Aina Koa Pono will cycle biofeedstock crops in a traditional manner to optimize land use and restore soils, the press release states.
The company promises 300 construction jobs to build its processing plant, plus 100 permanent jobs in Pahala.
HAWAI`I WILDLIFE FUND starts the new year with a Ka`u beach cleanup tomorrow. Volunteers meet at Wai`ohinu Park at 7:45 a.m. and head to Kamilo Beach. Call Megan at 769-7629 or email kahakai.cleanups@gmail.com.
The company promises 300 construction jobs to build its processing plant, plus 100 permanent jobs in Pahala.
HAWAI`I WILDLIFE FUND starts the new year with a Ka`u beach cleanup tomorrow. Volunteers meet at Wai`ohinu Park at 7:45 a.m. and head to Kamilo Beach. Call Megan at 769-7629 or email kahakai.cleanups@gmail.com.