HECO president and CEO, Mike May, said the utility would like to use
locally produced ethanol in the facility right from the beginning of the
project's operation, expected in 2009. He added HECO is also exploring the
option of using an ethanol-diesel blend in existing diesel-fired
electricity generating units.
"Renewable ethanol represents a clear opportunity to grow a significant
portion of our own fuel locally and begin to break the hold imported fuels
have on us," May said. "Our goal is to replace imported fossil fuel with
'local' agricultural energy to the extent possible. Encouraging local
production of renewable biofuels would protect open space and keep it
green with energy crops, create jobs here in agriculture, manufacturing
and other sectors, and keep more money at home by growing a sustainable
economy."
Hawaiian Electric's solicitation of interest letter will ask prospective
suppliers to indicate their ability to provide ethanol to specifications
such as chemical composition and heat-generating capacity for use in a
blend of ethanol and naphtha in the new plant. In the future, blended
ethanol and diesel might be used in existing diesel-fired units on Maui,
the Big Island and Oahu.
HECO's announcement was made at the University of Hawaii (UH) College of
Tropical Agriculture and Human Resources (CTAHR). At the news conference,
Dr. Andrew Hashimoto, dean and director of CTAHR, said:
"It is clear that we must find other agricultural enterprises to occupy
the lands formerly used for sugar and pineapple," Hashimoto said. "Taking
the land out of agriculture is not a wise, sustainable decision.
Agriculture is not only important for food production, green open space
and groundwater discharge. It can also create fuels for energy...I hope
today's event will be an important step toward ensuring Hawaii's energy
security."
The solicitation of interest to vendors is the first step. After receiving
responses, the next step -- to be taken in consultation with the Public
Utilities Commission and the Consumer Advocate (CA) -- would be a more
detailed request for proposals or direct negotiations with promising
providers. The PUC, with input from the CA, must finally approve all fuel
contracts.
The current proposed fuel for the new plant scheduled to come online in
2009 is naphtha, the cleanest burning of the fossil fuels available to
HECO. Naphtha is currently refined in excess in Hawaii, so no new crude
oil would need to be imported to meet the needs of the new unit.
The use of an ethanol blend will depend on the level of interest generated
and resolving the environmental, logistical and operational impacts of
receiving, storing, blending and burning ethanol at the proposed new unit
site.
HECO is in the midst of a multi-phase biofuels investigation program.
Phase One, a biofuels resource assessment, has been completed under the
direction of Associate Dean Charles M. Kinoshita of the UH CTAHR. The
study found that biodiesel and ethanol are the most promising candidate
biofuels in Hawaii based on potential reliability of supplies,
compatibility with existing and planned units and cost.
The second phase, a biofuels combustion test program, is under way. The
third phase, tentatively planned to begin later this year, is an
assessment of the needed facilities and operational changes to use
biofuels in existing generators. Based on the outcome of the first three
phases, the fourth stage would be a utility-scale demonstration.
Maui Electric Company (MECO), which already uses biodiesel in some of its
existing units, has also hired a biofuels consultant to determine an
initial compatibility on using ethanol in existing MECO diesel units.
