Hu Honua announced Wednesday that it has reached an agreement with Hawaii Electric Light Co. on an amended power purchase agreement.
HELCO agreed to revised terms for electricity to be produced by the biomass project and is submitting the amended contract to the Public Utilities Commission for approval of Hu Honua’s proposed pricing.
Hu Honua can resume construction on its half-completed facility and begin delivering clean, firm renewable energy by the end of 2018, if the PUC approves the amended PPA. The project would deliver firm, renewable power around the clock, making it a natural complement to HELCO’s existing portfolio of solar and wind power, which are intermittent sources.
“It’s a big win for Hu Honua, Hawaii Electric Light and the people of Hawaii Island to have an amended agreement. We are hopeful the PUC will recognize the project’s value in terms of economic benefits and energy stability,” said Harold “Rob” Robinson, president of Island BioEnergy, Hu Honua’s parent company.
The amended PPA submission to the PUC includes information on pricing, which is lower than the original PPA; how the project will be less expensive compared to existing fossil fuel plants; and how the project will provide firm renewable energy that can replace existing fossil fuel plants.
Hu Honua Bioenergy, LLC is located in Pepeekeo. When completed, the facility will be able to produce up to 30-megawatts of renewable baseload power, which means the plant can deliver reliable power that can be dispatched 24 hours a day, seven days a week.