Hu Honua Moves Forward on Site Construction, Reaches Settlement with Hawaiian Dredging

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Media Contact:
Ashley L. Kierkiewicz
Hastings & Pleadwell
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alk@hastingsandpleadwell.com

Hu Honua Moves Forward on Site Construction, Reaches Settlement with Hawaiian Dredging

(Hilo, HI, DECEMBER 19, 2014)—Hu Honua Bioenergy (HHB) expects to resume onsite operations with a full team of employees and contractors before year-end, including final site preparation, delivery of specialized equipment and construction mobilization.

The accelerated activity comes after HHB and Honolulu-based Hawaiian Dredging Construction Company (HDCC) reached a settlement to resolve a contractual dispute between the parties related to the refurbishment of HHB’s renewable energy facility in Pepeekeo.

Specific terms of the settlement are covered by a confidentiality agreement.

“We are pleased to be back on course, moving forward with construction and to resume full site activity,” said John G. Sylvia, Chief Executive Officer for Hu Honua. “As we have stated previously, there were a number of complicated issues across multiple parties that required time to resolve for the settlement; we appreciate HDCC’s patience and efforts in working through the challenges.”

Refurbishment activity, including survey and permitting work, has been underway for the final phase of construction, which is expected to be complete within 12 months, following full mobilization.

In late October, HHB received two shipments of specialized equipment in Hilo—a custom re-injection system and air quality emission control operating system. HHB designed a re-injection system for the brackish water to return to its original source after it has passed through the system’s condenser and cooled the turbine’s exhaust steam. The air quality system will maximize overall system efficiency and lower emissions beyond what is required by regulators.

Additional specialized equipment including fuel handling and the remaining emissions control equipment has been fabricated and is in route to Hilo from the mainland.

About Hu Honua Bioenergy
Hu Honua Bioenergy is refurbishing the former sugar mill power plant at Pepeekeo into a modern biomass electricity generation facility with advanced emission control equipment. HHB will sell electricity to Hawaiian Electric Light Company under a twenty-year power sales contract. The HHB facility will generate about 100 construction jobs during the refurbishment process and 30 permanent operational and maintenance positions once the project is online. Additionally, more than 130 indirect jobs in forestry, harvesting, hauling, and local service shops are expected to be generated in the local economy.

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