Testing Biodiesel In Hawaii

Hawaiian Electric Company has signed a contract with a subsidiary of Iowa-based Renewable Energy Group to supply 400,000 gallons of renewable, clean burning biodiesel to be used to conduct biodiesel operational testing and collect additional emissions data for the new Campbell Industrial Park Generating Unit.

REG emerged as the winning bidder from among eight companies seeking to supply the biodiesel for testing. As with all Hawaiian Electric fuel contracts, this contract has been submitted to the Hawaii Public Utilities Commission (PUC) for review, as well as for input from the Hawaii Division of Consumer Advocacy, before the contract can be included in Hawaiian Electric’s fuel costs.

“We are proud Hawaiian Electric has chosen us as a partner and look forward to helping Hawaii meet the goals of the Hawaii Clean Energy Initiative by providing highquality biodiesel which reduces life cycle carbon dioxide values by 78 percent compared to petroleum diesel fuel,” said REG Chairman and CEO Jeff Stroburg. “The state is to be commended for its leadership in creating a model for other utility companies across the country to follow.”

In August, Hawaiian Electric resumed the search for a biodiesel supplier for the Campbell Industrial Park Generation Station after the PUC rejected a previous contract with another potential supplier.

In addition to the 400,000 gallon contract, a second request for proposals to supply 3 million to 7 million gallons of biodiesel per year for two years closed on September 30, 2009, with the goal of completing a contract for PUC consideration by the end of November.

“We are grateful to all the bidders who responded so quickly and we are very happy to be working with Renewable Energy Group on this essential step in meeting our commitment to the PUC and Consumer Advocate to power the new peaking unit with renewable biodiesel,” said Robbie Alm, Hawaiian Electric executive vice present.

“Being able to use liquid renewable fuels in our generating units is one of many steps including more electricity from other renewable sources such as solar, wind, biomass and the ocean to meet our goal of providing reliable electric service while reducing Hawaii’s dependence on fossil fuels,” he said.

In August 2007, the Natural Resources Defense Council and Hawaiian Electric established an environmental policy for procurement of biodiesel from sustainably produced palm oil and locally grown feedstocks.

REG’s response to the RFP proposes to supply high quality biodiesel processed from used cooking oil and waste animal fat. While the use of waste is not covered directly by the 2007 NRDCHECO Environmental Policy, the NRDC has indicated that this is likely to represent a positive environmental approach as compared to other feedstock that may be produced through unsustainable management practices.

The Campbell Industrial Park Generating Station consists of one 110 megawatt combustion turbine generator and auxiliary systems to be used as a peaking unit. Construction is complete and preliminary performance testing is underway.

Renewable Energy Group operates a national network of biodiesel production with the capacity to produce more than 300 million gallons of biodiesel per year. As a member of the National Biodiesel Board, REG adheres to the industry’s Biodiesel Sustainability Principles found at www.biodieselsustainability.com

Renewable Energy Group is a leader in the biodiesel industry by offering a complete biodiesel solution. Committed to redefining quality, Renewable Energy Group markets REG9000TM biodiesel, which exceeds ASTM quality specifications, through existing nationwide diesel infrastructure, including more than 20 terminal locations.

REG9000 biodiesel is marketed through large petroleum companies and fuel distributors and is utilized by onhighway fleets, municipalities, and power generators for mining, military, home and agriculture applications.

REG9000 biodiesel is produced by REG network production facilities consisting of stateoftheart, proprietary multiple feedstock technology. Renewable Energy Group offers procurement and risk management, production operations, and technology services in addition to alternative feedstock research and commercialization.

Hawaiian Electric Company, Inc. and its subsidiaries, Hawaii Electric Light Company, Inc. and Maui Electric Company, Ltd. provide electricity to 95 percent of the state’s 1.2 million residents on Oahu, Hawaii, Maui, Lanai, and Molokai.

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