Hawaiian Electric Companies seek ULSD, biodiesel proposals
September 3, 2013
BY The Hawaiian Electric Companies
The Hawaiian Electric Companies began a search for suppliers of cleaner fuels, including ultra-low sulfur diesel (ULSD), biodiesel or biodiesel blends. The companies are seeking up to 150,000 barrels per year (6.3 MMgy) to supply Maui Electric and Hawaii Electric Light Co. generation facilities beginning Jan. 1, 2015, for a contract term of up to three years.
This request for proposals offers biodiesel suppliers—including local biodiesel producers—the opportunity to offer biodiesel or biodiesel blends for all or part of the required volumes on Maui, Molokai, Lanai or Hawaii Island. Proposals will be considered if the biodiesel price is competitive with the price of ULSD.
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Hawaiian Electric continues to use 100 percent renewable biodiesel on Oahu in the Campbell Industrial Park Generating Station. It will also do so in the planned Honolulu International Airport Emergency Generation Facility. In addition, all diesel vehicles in the Hawaiian Electric fleets use B20, a blend of 20 percent biodiesel with 80 percent petroleum diesel.
Using renewable biofuels is one of many paths the Hawaiian Electric Companies are following to reduce Hawaii’s dependency on fossil fuel. The companies also continue to seek more energy from renewable sources, such as solar, wind, geothermal, biomass, hydro, and, in the future, from the ocean. Firm generation using biofuels in place of fossil fuels can supply the essential firm backup needed to take maximum advantage of variable renewables, such as wind and solar.
As with all fuel and power purchase contracts, the final negotiated contract or contracts will be submitted for review by the Hawaii State Public Utilities Commission with input from the Hawaii Office of Consumer Advocacy.
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Prospective bidders will find more information here. Any biofuel provided to the Hawaiian Companies must conform to environmental guidelines for the sustainable use of biofuels developed by Hawaiian Electric in partnership with the Natural Resources Defense Council, also available on the site. The proposal deadline is Oct. 15, 2013.
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