Hawaiian Electric Co. has selected Pacific Biodiesel Inc. to supply locally produced biodiesel for an emergency power generation system at Honolulu International Airport.
Maui-based Pacific Biodiesel will provide HECO with at least 250,000 gallons of made from locally recycled cooking oil under the three-year contract, the companies said. The biodiesel will be burned in an 8-megawatt generating station scheduled to be completed in October 2010.
The four generating units at the facility will feed electricity into the HECO grid during normal operations, but will be isolated to power the airport exclusively during an emergency, HECO said.
Cellana Inc. said it has begun producing oil from algae grown at its Kona facility and is on track to begin commercial production by 2014.
The Big Island company is harvesting up to one ton of algae a month in ponds at its 6-acre facility at Keahole Point. The company estimates it will be able to grow up to 60 tons of algae capable of producing 3,800 gallons of oil per acre per year.
The oil can be refined into a variety of products, including biodiesel for automobiles and power generation plants. Other uses include animal feed, cosmetics, nutritional oils and industrial chemicals.
Oil-rich algae is considered an attractive crop for biofuel production because of its relatively high yield compared with other crops. Algae can produce up to 11 times more oil per acre than the oil palm nut, the next-highest yielding feedstock, according to the U.S. Department of Energy. Algae yields are as much as 145 times higher than soybeans, the department said.
“Over $100 million has been invested to date in our Kona demonstration facility, our algae strains and the process we use to grow, harvest and separate our algae biomass, which puts Cellana on a very short list of leading companies in the emerging algae-based biofuels and bioproducts industry,” said Martin Sabarsky, Cellana’s chief executive office.
Kona-based Cellana LLC has received a $5.5 million federal grant to develop animal feed from algae grown at its facility at Keahole Point.
The grant from the U.S. Department of Agriculture will be combined with $1.6 million raised by Cellana for the project titled “Developing a new Generation of Animal Feed Supplements,” according to a news release from the office of U.S. Sen Daniel Inouye. The project began May 1 and runs through April 30, 2014.
In addition to animal feed, algae can also be used to produce oil that can be refined into a variety of fuel products, including biodiesel that can be burned in automobiles and power plants.
“By developing a cheaper form of animal feed from marine algae we allow our livestock and dairy industry to remain competitive by reducing the amount of revenue they direct to feeding their animals,” Inouye said in the release.
“I would like to laud Cellana’s efforts to move Hawaii away from the use od imported fossil fuels while developing innovative new products form one of our most readily available resources,” he said.
`AINA KOA PONO asked the state Legislature yesterday to support a 15 percent tax credit for building a refinery here in Pahala. Chris Eldridge, who also owns American Mattress stores around the state, is an `Aina Koa Pono partner. His testimony for yesterday’s hearing describes former sugar lands, now largely used by the cattle industry between Pahala and Na`alehu, as “fallow,” and says that using land for a biofuels farm and factory would help fend off a rise in fuel prices statewide. “Building agriculturally based biofuel refineries in Hawai`i has the potential to reinvigorate Hawai`i’s struggling agriculture industry while also helping to meet the renewable energy goals of Hawai`i’s Clean Energy Initiative,” said Eldridge.
THE NUMBER OF JOBS projected for the proposed biofuels refinery and farm here in Ka`u was increased in the testimony that asks for the 15 percent tax credit. Eldridge said that in addition to 300 construction jobs over two years to build the refinery in Pahala, `Aina Koa Pono now projects 150 to 200 jobs created for the 20 to 30 years that the biofuel refinery would be in operation.
HE ALSO SUGGESTED that the tax break bill be amended to provide tax credits within 60 days after the refinery becomes operational. “We cannot emphasize enough the need for these incentives to attract private capital to invest in these projects for Hawai`i.
Hawaiian Electric Co. is seeking a company to supply locally-produced biodiesel to power its recently completed 110-megawatt generating station in Campbell Industrial Park.
The request for proposals state’s HECO’s preference for locally-produced biodiesel, but if it isn’t available in sufficient quantities the utility said it would accept biodiesel produced on the Mainland or a mix of the two.
The contract is for three to seven million gallons of biodiesel a year over a three-year period. The contract will replace a two-year deal with an Iowa-based supplier of biodiesel made from waste animal fat. That contract that expires in July 2012.
The Campbell plant is the largest commercial power plant in the world powered exclusively by biodiesel, according to HECO.
included in the RFP is a request to supply 250,000 additional gallons per year for the 8-megawatt Honolulu International Airport Emergency Power Facility which is projected to be in service in summer of 2012.