June 2012

Agreement Reached with Utility

Activity at Hū Honua Bioenergy (HHB) is picking up. Hū Honua and Hawaii Electric Light Company (HELCO) signed a Power Purchase Agreement on May 21 for 21.5 megawatts (MW) of renewable, dispatchable firm capacity fueled by locally grown biomass.

Over the 20-year term of the agreement, the Hū Honua facility at Pepe‘ekeo on the Hāmākua Coast would supply electricity at pricing not tied to the price of oil.

Once permits and approvals are in place the reconstruction will begin in earnest. HHB has been cleaning up the site and renovating auxiliary buildings for offices, reconstruction of the electric generation is anticipated to begin soon.

Hawaiian Dredging Construction Company (HDCC) and HHB are in final negotiations for the design and construction work.

Heavy Equipment Moves to Site

HDCC will be mobilizing construction equipment and re-positioning it to the site in preparation for construction activity later this summer following administrative processes.

Estimates are that Hū Honua will be able to supply about 10 percent of the island’s electricity needs. The plant is anticipated to be completed approximately 18 months after refurbishment begins.

“Hū Honua will displace about 250,000 barrels of oil per year, keeping that money in the local economy,” said John Sylvia, CEO of HHB.

The project will also support the local economy by creating about 80 to 100 jobs during the refurbishment phase and about 28 to 30 jobs when the facility begins operation; another 100 indirect jobs are anticipated in the timber and related industries.

Once the reconstruction is complete, “we look forward to providing dispatchable renewable energy to the grid, which complements the integration of intermittent sources such as wind and solar,” said Sylvia. “Our biomass-to-electricity process is cleaner than fossil fuel, is efficient and makes use of existing sustainable biomass on the island.”

Community Outreach

Kalaniana‘ole Elementary and Intermediate School Ho‘olaulea

HHB has donated to the Kalaniana‘ole Elementary and Intermediate School Ho‘olaulea fundraiser. The donation will be used towards learning enrichment activities.

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