HECO Issues RFP for Biofuel

In a recent agreement reached with the Hawaii Division of Consumer Advocacy, HECO committed to use 100 percent biofuel in the new unit, subject to approval from the Hawaii Public Utilities Commission (PUC) and obtaining the necessary air permit from the State of Hawaii Department of Health.

Companies prepared to enter a multi-year agreement to supply and regularly deliver biodiesel or ethanol for the new unit have until February 15, 2007 to submit a proposal. If approved by the PUC, the new generating unit is scheduled to be in service by mid-2009.

"As far as we know, there is not another utility combustion turbine electricity generator using or planning to use biofuels in the United States, and probably the world," said Tom Joaquin, HECO senior vice president of operations.

HECO's selection between ethanol and biodiesel and selection of a supplier will be based on many factors, including price, value, timeliness of supply, technical considerations, security of supply, terms and conditions of supply, and supplier experience and demonstrated ability to perform, delivery means and methods and product quality.

"This RFP will enable HECO to evaluate potential biofuel suppliers and ultimately select and contract with a supplier. Our preference is for biofuel made from Hawaii-grown feedstock, but we are open to biofuel produced elsewhere as well," Joaquin said.