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Hawaii to switch to biofuel for electricity generation

Hydrocarbon Engineering,

Hawaiian Electric Company, subsidiary of Hawaiian Electric Industries, Inc.

Has signed an agreement with a local firm Aina Koa Pono(AKP) to supply them with locally sourced and produced biofuel, which will initially be used to power electricity generation on the island. AKP will deliver 14 million gallons per year in 2014, which will increase to 16 million gallons per year in 2015 for the next 20 years.

“This is the first contract awarded as a result of our call in April 2010 for locally grown and processed biofuels to be used in our power plants on Hawaii Island, Oahu and in Maui County,” said Robbie Alm, Hawaiian Electric executive vice president.

“The team at Aina Koa Pono submitted an excellent proposal and was prepared to negotiate with the best interests of the State and Hawaii Island at heart.”

Alm said the contract is an important step in reaching Hawaii’s clean energy goal of 70% of electricity and transportation energy from clean sources by 2030.

The contract also provides for the potential future delivery of biofuels to other outlying islands, in time the cost of Biofuel, which is currently higher than fossil fuel will drop below it as fossil fuel price continues its inexorable rise. Hawaii Island already has the highest level of renewable energy in the state.

“Hawaii Island already has the highest level of renewable energy in the state, getting more than 30% of its energy from renewable sources. Renewable energy requirements are calculated on a consolidated basis for the Hawaiian Electric companies’ service territories, so Maui and Oahu have benefited from Hawaii Island’s leadership,” Alm said.

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