Hawaii Tribune-Herald July 14, 2008

HELCO aims for renewable island energy
by Cameron Johnson
Tribune-Herald Staff Writer
Published: Monday, July 14, 2008 9:58 AM HST
Company wants to generate electricity from isle biomass
An Ookala biomass power plant and Hawaii Electric Light Co. have signed 20-year power purchasing agreement, and HELCO is talking with two other Hamakua groups planning to burn plant matter to produce electricity.

The Tradewinds Forest Products plant is expected to add 2 megawatts of electricity to the grid beginning in October 2010, said Curtis Beck, manager of the HELCO energy services department.

"We understand they may try to process their forest products earlier than that, and bring on their generating unit a little bit later," said Beck.

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HELCO is also in talks with Hamakua Biomass Energy, which is looking to build a plant near Paauilo, and Hu Honua Bioenergy, which has started work to reconfigure the Pepeekeo sugar mill plant to burn biomass instead of coal and fuel oil, said Jay Ignacio, HELCO president.

The Pepeekeo plant will produce 24 megawatts, and the proposed Paauilo plant will produce 30 megawatts, according to the companies.

"At this point, any additional generation sources that we would add to the system, we would like it to be from a renewable source," Ignacio said. "Adding additional renewable generation sources at lower cost than fossil fuel is moving in the right direction. That's the direction we are going at HELCO."

When asked if the island can supply three biomass burning plants, Ignacio said: "So far, all the people who have proposed (it) to us say they can. The question is: are they competing for the same fuel supply? We don't know."

Each company must show it has a sustainable supply of biofuel, Ignacio said.

"They won't be competing for our fuel because our fuel is under contract," said Don Brian, CEO of Tradewinds.

Brian said Tradewinds plans to have its eucalyptus veneer plant working by mid-2009. Its power plant, which will burn tree waste, should be operational the following year. Tradewinds does not yet have a permit from the Environmental Protection Agency.

"You can't build without an air permit in hand," Brian said. "We think it's on its way to us, and we expect to see something here shortly."

The Tradewinds plant will be on the outskirts of Ookala, on the old sugar mill site.

HELCO has enough power generation to meet the Big Island's needs now, and doesn't foresee a need for new generation until 2022, Ignacio said. HELCO itself is considering using biofuels in its existing plants and is evaluating tests done by sister companies Maui Electric Co. and Hawaiian Electric Co.

"Basically, we're subject to state law and the renewable portfolio standards," said Curtis Beck, manager of HELCO's energy services department. The state has required HELCO have 20 percent renewable generation by 2020.

It turns out -- based on 2007 numbers, HELCO is already at 31 percent, and will be at 35 percent later this year, Beck said.

The Big Island has so much renewable energy production, said Beck, Maui and Oahu can use the Big Island's production to offset their lack of renewable energy. It's a complicated equation, he said, "but we're working to see how we can collectively reach that (20 percent mark)."

HELCO is not under any obligation to purchase electricity from these biomass power plants, Beck said, but "it's a policy that any further regeneration we build or purchase will be renewable, which is why we're interested in the Hu Honua project."

HELCO's power

HELCO's sources of renewable power and how much energy each creates:

- Puna Geothermal -Venture:

30 megawatts in Kapoho

- Wailuku River

Hydroelectric Power Co.:

11 megawatts plant in Hilo (though it is not

producing that now due to lack of rain)

- Two HELCO-owned hydroelectric plants:

Puueo produces 3.2 megawatts; and Waiau 1.1 megawatts

- Hawi Renewable

Development:

10-megawatt wind farm

- Apollo Wind Co.'s

Pakini Nui plant at South Point:

20 megawatts

- Coming online in 2010: Tradewinds Forest Products Ookala

biomass plant:

2 megawatts