Hawaii’s Public Utilities Commission has given the go-ahead for two power plants to use renewable biodiesel as a fuel.

Utility Hawaiian Electric Company was cleared to source between three and seven million gallons of fuel, produced from used cooking oil and waste animal fat, from Iowa company Renewable Energy Group.

The Commission also approved a contract for Malaysian conglomerate Sime Darby to supply biodiesel made from palm oil to a biodiesel demonstration plant run by Maui Electric Company at its Ma’alaea Power Plant.

HEC will be using the recovered oil biodiesel known as REG-9000 in the new 110-megawatt combustion unit at the Campbell Industrial Park Generating Station, which was completed last year.

The new unit can start quickly and also increase or decrease power output quickly, with HEC saying it would be important in helping balance the electricity network as more intermittent renewable energy sources like wind or solar power come online. It will also help restart the electric system in the event of a blackout.

Meanwhile Maui Electric is to demonstrate the use of biodiesel in replacing petroleum-based diesel in its generating units at Ma’alaea over a four-month period. The test will assess impacts on air emissions, heat rate, operations and maintenance costs.

Targets

Both projects are seen as helping with Hawaii’s target to source 40% of its electricity from renewable sources by 2030.

“We are moving forward in our quest for locally grown and processed biofuels for our units,” said Robbie Alm, Hawaiian Electric executive vice president.

“At the same time, this short-term contract for the new Campbell Industrial Park generator and the biofuel to test on Maui will allow us to provide power to our customers today as we create a market in Hawaii to nurture an agricultural energy industry for tomorrow.”

HEC and its subsidiaries including Maui Electric Company, provides electricity to 95% of the state’s 1.2 million residents.