Hawaiian Electric utilities seek cleaner fuel supplies
News Release from HECO August 30, 2013
(Honolulu, Hawaii) – The Hawaiian Electric Companies today began a search for suppliers of cleaner fuels, including ultra-low sulfur diesel (ULSD), biodiesel or biodiesel blends. The companies are seeking up to 150,000 barrels per year to supply Maui Electric and Hawaii Electric Light Company generation facilities beginning January 1, 2015 for a contract term of up to three years.
This request for proposals offers biodiesel suppliers -- including local biodiesel producers -- the opportunity to offer biodiesel or biodiesel blends for all or part of the required volumes on Maui, Molokai, Lanai or Hawaii Island. Proposals will be considered if the biodiesel price is competitive with the price of ULSD.
Hawaiian Electric continues to use 100 percent renewable biodiesel on Oahu in the Campbell Industrial Park Generating Station. It will also do so in the planned Honolulu International Airport Emergency Generation Facility. In addition, all diesel vehicles in the Hawaiian Electric fleets use B20, a blend of 20 percent biodiesel with 80 percent petroleum diesel.
Using renewable biofuels is one of many paths the Hawaiian Electric Companies are following to reduce Hawaii’s dependency on fossil fuel. The companies also continue to seek more energy from renewable sources, such as solar, wind, geothermal, biomass, hydro, and, in the future, from the ocean. Firm generation using biofuels in place of fossil fuels can supply the essential firm backup needed to take maximum advantage of variable renewables, such as wind and solar.
As with all fuel and power purchase contracts, the final negotiated contract or contracts will be submitted for review by the Hawaii State Public Utilities Commission with input from the Hawaii Office of Consumer Advocacy.
Prospective bidders will find more information at http://www.hawaiianelectric.com/fuels. Any biofuel provided to the Hawaiian Companies must conform to environmental guidelines for the sustainable use of biofuels developed by Hawaiian Electric in partnership with the Natural Resources Defense Council, also available on the site. The proposal deadline is Oct. 15, 2013.
Hawaiian Electric Company and its subsidiaries, Hawaii Electric Light Company and Maui Electric Company, serve 450,000 customers on the islands of Oahu, Hawaii, Maui, Lanai and Molokai, home to 95% of Hawaii’s 1.4 million people. Hawaiian Electric Company is a subsidiary of Hawaiian Electric Industries (NYSE: HE). For more information, visit www.hawaiianelectric.com .