The fuel is expected to be produced from woody biomass and will be consistent with the Roundtable for Sustainable Biofuels’ sustainability criteria.

Alaska Airlines is the second customer for Hawai`i BioEnergy. The company signed its first contract with Hawaiian Electric to supply ten million gallons of fuel per year for power generation to the state. The contract is yet to receive an approval from Hawaii Public Utilities Commission.

Upon regulatory approval, Hawai’i BioEnergy will increase biofuel production within five years and will start supplying fuel to Alaska Airlines by fall 2018.

Alaska Air Group executive vice president and general counsel Keith Loveless, said, "We are pleased to be partnering with Hawai`i BioEnergy to encourage the production and commercial distribution of sustainable fuels.

"Beyond the environmental advantages, it improves the fuel supply integrity in the state of Hawaii, which will allow for the further growth of our airline operations throughout the Islands."

Hawai’i BioEnergy executive vice president and chief operating officer Joel Matsunaga, said, "The development and commercialization of local, renewable energy is of critical importance to Hawaii, given the state imports 95 percent of its energy needs."

Matsunaga said the use of locally grown feedstocks for biofuel production will improve energy sustainability and security in the state while creating jobs in the communities.

Alaska Airlines has been using biofuel blend for its multiple passenger flights since 2011.