Over the 20-year term of the agreement, the Hu Honua facility at Pepe?ekeo on the Hamakua Coast will provide electricity.
The agreement seeks the Hawai?i Public Utilities Commission approval, with input from the state Division of Consumer Advocacy.
Hu Honua Bioenergy’s facility will consist of a biomass fuel yard, steam boiler, turbine and generator.
HELCO president Jay Ignacio said, "With the addition of Hu Honua to the HELCO power grid, over 50 percent of our island’s electricity will be provided by renewable resources."
Hu Honua CEO John Sylvia said Hu Honua will displace about 250,000 barrels of oil per year, keeping that money in the local economy.
"Our biomass-to-electricity process is cleaner than fossil fuel, is efficient and makes use of existing sustainable biomass on the island," Sylvia said.
At the facility, the company is converting the former Pepe’ekeo Sugar Mill into an efficient electric generation facility using renewable biofuel, including locally grown biomass, such as eucalyptus.
Hu Honua plant is anticipated to be completed approximately 18 months after refurbishment begins, and it is expected to provide about ten percent of the island’s electricity needs.
