Deal to Provide Biodiesel to Utility Approved

John Davis

pacificbiodieselA deal that would provide locally produced biodiesel to a Hawaiian utility received approval from regulators. This article from Pacific Business News says the deal was approved by the Hawaii Public Utilities Commission and has Pacific Biodiesel Technologies providing the green fuel to Hawaiian Electric Co. for a 110-megawatt power generation facility.

The contract calls for Pacific Biodiesel to supply Hawaiian Electric with between 2 million gallons and 3 million gallons per year of biodiesel at a lower price than either of the biodiesel contracts currently in place.

Hawaiian Electric noted that the impact of $3 million in incremental savings on the typical 600 kilowatt-hour residential customer bill equates to a reduction of 30 cents per month, or a 0.2 percent decrease.

Iowa’s Renewable Energy Group Inc. has the current contract to provide biodiesel processed from waste fats and oils to the Campbell Industrial Park plant. That contract ends in November.

The article went on to say the new contract will use up half of Pacific Biodiesel’s production volume.