REG wins biodiesel supply deal for Hawaiian power plant

January 11, 2010

Hawaiian Electric Company will be supplied biodiesel for its new 110MW combustion generator plant by Iowa-based REG.

The utility that serves 95% of Hawaii’s 1.2 million resident population has signed a deal with the Renewable Energy Group (REG) for between three to seven million gallons of renewable biodiesel each of the next two years.

REG won out over seven other companies to supply its REG-9000 renewable fuel for the generator unit at the Campbell Industrial Park Generating Station.

The company had previously won a bid to supply biodiesel for emissions-testing in the unit.

REG will supply high quality biodiesel made from processed used cooking oil and waste animal fat.

The deal is subject to the approval of the Hawaii Public Utilities Commission (PUC), which will consult with the Hawaii Division of Consumer Advocacy before giving the green light.

Delivery of the biodiesel could begin within about four months of PUC approval.

REG Chairman and CEO Jeff Stroburg said: “Using biodiesel helps HECO, their neighbors and the entire power generation industry breathe better. The state is to be commended for its leadership in creating a model for other utility companies across the country to follow.”

Renewable Energy Group operates a national network of biodiesel production with the capacity to produce more than 300 million gallons of biodiesel per year.

HECO said the company was a member of the National Biodiesel Board, which means that REG adheres to the industry’s Biodiesel Sustainability Principles found at www.biodieselsustainability.com.