Hu Honua Reaches Agreement with Hawaiian Electric on Biomass Plant

Hu Honua recently said that it has reached an agreement with Hawaii Electric Light Company (HELCO) on an amended power purchase agreement (PPA) for the company’s planned 30-MW biomass facility in Pepe‘ekeo, Hawaii.

HELCO last year terminated its state commission-approved PPA with Hu Honua. The developer subsequently filed a civil antitrust complaint in federal court, alleging HELCO terminated the PPA to increase monopolistic control over Hawaii Island’s energy production.

Hu Honua said that HELCO now has 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.

The company said that it can resume construction on its half-completed facility and begin delivering energy by the end of next year, if the PUC approves the amended PPA.

Harold Robinson, president of Island BioEnergy, Hu Honua’s parent company, said in a May 10 statement that the amended agreement is “a big win for Hu Honua, [HELCO] and the people of Hawaii Island.” 

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