Honua Ola Bioenergy, formerly known as Hu Honua Bioenergy, is in talks with Hawaiian Electric (HECO) regarding a third power purchase agreement (PPA) to supply electricity to Big Island consumers Hawaii Tribune-Herald. The company's president has indicated that an "agreement in principle" is in place, although details are still being finalized. This potential deal marks a significant step for Honua Ola, which has faced numerous hurdles in bringing its biomass power plant in Pepeekeo online. The plant, which is reportedly 99.9% complete, is designed to generate 21.5 megawatts of power using locally-sourced biomass, like eucalyptus and albizia trees, providing a potential renewable energy source for the island.
The implications of a successful PPA are far-reaching for Hawaii Island. Honua Ola claims its facility will reduce reliance on imported fossil fuels, potentially shielding residents and businesses from volatile oil prices and helping the state meet its renewable energy goals. The project also promises to create jobs in construction, plant management, forestry, and various ancillary services Honua Ola Bioenergy. The project has faced considerable legal and regulatory challenges, including lawsuits and the revocation of a competitive bidding waiver. Despite these setbacks and the high cost of the project (approximately $520 million), Franklin Templeton Investments, has continued to provide financial backing.
For Hawaii's entrepreneurs and investors, this development represents a potential inflection point. The success of Honua Ola could validate the viability of biomass energy in the state, potentially spurring further investment in similar projects. Moreover, it could create opportunities for businesses involved in biomass sourcing, transportation, and plant maintenance. However, the project's history underscores the complexities of the renewable energy sector in Hawaii, which involves navigating regulatory hurdles, community concerns, and fluctuating market conditions. The agreement's approval rests with the state's Public Utilities Commission (PUC), making community support and rigorous environmental standards critical West Hawaii Today.
The ongoing negotiations highlight the state's commitment to renewable energy and the challenges inherent in achieving this goal. While HECO has been working on programs to incorporate more customer-friendly solar programs to add renewable energy to the grid, the Honua Ola project holds the potential to significantly change the energy generation landscape of Hawaii Island. The final outcome of the latest PPA negotiations will significantly impact the energy sector and shape the opportunities available for Hawaii’s business community.
