Sustainability

Electricity from Renewable Sources

A Message from Par Hawaii’s President

Par Hawaii to hold a community outreach meeting on Wednesday, August 28 for the new cogeneration facility in Kapolei to run on renewable fuels.  To register, visit  https://www.eventbrite.com/e/par-hawaii-renewable-energy-project-community-presentation-tickets-952945625017?aff=oddtdtcreator.

If you have any questions, suggestions or concerns, please reach out to Marc Inouye, our Director of Government and Public Affairs, at minouye@parpacific.com or call (808) 203-2344 (office) or (808) 352-2479 (cell).

 

Aloha!

A reliable, affordable, and low-carbon source of energy is important to all of us in Hawaii. Par Pacific is proud to be partnering with Hawaiian Electric Company to generate electricity from low-carbon, renewable sources.

Par Pacific takes its role in shaping our state’s energy future very seriously. We are excited to be selected by HECO as a finalist in connection with a request for proposals for firm, renewable-fired electricity generation. Our project would develop an electricity and steam cogeneration facility, powered by renewable fuels, at our refinery in Kapolei. This will be the first of its kind in our islands and by 2027, we will generate 30 megawatts of electricity for Hawaiian Electric’s grid. At full capacity, that is enough power for up to 30,000 homes!

Our company is advancing renewable initiatives across the western United States to meet the growing demand for lower-carbon energy. In Washington, we are co-processing renewable feedstocks with conventional crude oil to produce more sustainable fuels. We are also scoping a project to produce green hydrogen and sustainable aviation fuel (SAF) in the region. In Hawaii, we’re actively investing in the conversion of an existing refinery unit to produce SAF, and other renewable fuels which can be used to produce low-carbon, reliable electricity.

Upon its completion, this will be one of the most efficient power facilities in the state. The project utilizes existing infrastructure at our Kapolei facility. The heat generated by the power plant will be reused to produce steam for the production of fuels for Hawaii. This will move us closer to our state’s goal of generating 100% of electricity from renewable sources.

Keeping you updated on our progress is a priority for Par Hawaii. Please bookmark this website, visit us regularly, and send us any suggestions and comments. Mahalo!

More power to you,

Eric Wright
President
Par Hawaii

Par Hawaii - Island of Oahu

Overview

For over 50 years
Par Hawaii has played a critical role in meeting the state’s current energy demand. Par Hawaii’s refinery in Kapolei is capable of processing up to 94,000 barrels of crude oil each day to produce a full spectrum of fuels, including gasoline, diesel, jet fuel, marine fuel and fuel oil for electrical power generation.

Par Hawaii’s refinery produces fuel for Hawaiian Electric, Kauai Island Utility Cooperative, independent power producers as well as Hawaii Gas. We are also the leading provider of transportation fuels in Hawaii. Our customers include airlines, the U.S. military, marine and trucking users, and motorists.

Earlier this year, Par Hawaii announced a separate $90 million investment to upgrade an existing refinery unit – the distillate hydrotreater – to process biofuel feedstocks (fats, oils and greases) and plant-based feedstocks to produce renewable diesel, sustainable aviation fuel, renewable naphtha and renewable liquid petroleum gases (LPG). The reconfiguration of our hydrotreater is targeted for completion in 2025 and would produce approximately 4,000 barrels per day of renewable fuels, including approximately 1,000 barrels of renewable naphtha per day.

We’re leveraging our decades of refining expertise to now generate electricity from renewable sources. This will help our state meet the requirement to generate all electricity from renewable sources by 2045.

Project Benefits

The Renewable Cogeneration Facility will run on renewable fuels produced at our Kapolei refinery. Electricity is generated through a gas turbine – very similar to a jet engine. It will also produce steam that we’ll be able to harness to produce fuels at our refinery, making it highly efficient!

The Renewable Cogeneration Facility will generate firm renewable electricity, an important component of serving electric consumers in Hawaii. Firm renewable sources offer more reliability than intermittent sources such as solar power, which is dependent upon available sunshine. This project will also help Hawaiian Electric reach its goal of using 40% renewable energy for electricity production by 2030.

Project Details

Renewable Cogeneration Facility

Facts at a Glance

The Renewable Cogeneration Facility consists of three major parts: 1) a fuel storage area; 2) a cogeneration area; and 3) a substation.
The Fuels Storage Area will include a 20,000-barrel liquid fuel storage tank and a 30,000-gallon pressurized gas storage tank.

The Cogeneration Area will utilize a Combustion Turbine, the equivalent of jet engine.

The Gas Combustion Turbine will use a Synchronous Generator with an installed nameplate capacity of 33.9 MWAC.
The facility will have a net output of 30.6MWAC — enough electrical power for 30,000 homes.
The substation will transform the cogeneration power up to grid voltage to supply the Campbell Industrial Park and surrounding areas.

Timeline

2024

Interconnection study and negotiation of Power Purchase Agreement (PPA) with Hawaiian Electric

2025

Execution of PPA and approval process at Public Utilities Commission

2026-2027

Procurement and construction Completion of interconnection to Hawaiian Electric

2027

Commence commercial operations

FAQs

In a nutshell, what will this Renewable Cogeneration Facility do?
The proven technology used in the Renewable Cogeneration Facility will use liquid fuels to reliably produce electricity for our community and steam for production of fuels. About 30 megawatts of electrical power will be supplied to Hawaiian Electric Company, which at full capacity is enough energy for 30,000 homes.
How long will this project take to complete?

Based on the various government permits required to build this facility, we anticipate the project will be completed by 2027.

When will you able to provide electricity to Hawaiian Electric Company?

Based on the project schedule, we will go live some time after our construction and testing stages are completed by 2027.

Will we see an increase in our electric bills as a result of this project?

Fuel prices depend on a number of factors and it is too early to tell how this project will impact customer bills. It is important to note that producing renewable fuels is more costly than producing traditional petroleum fuels. Our goal is to produce reliable, affordable, and low-carbon energy sources. That is why government support for locally produced renewable fuels is so important to move our state forward.

How will this project impact the surrounding Kapolei neighborhood?
This project will be located on approximately 2 acres within the existing grounds of our Kapolei refinery in Campbell Industrial Park. We do not foresee this project having any impact to our neighbors. As with all of our refining operations, safety and environmentally responsible operations are our foremost concerns. We will comply with all applicable federal, state, and county laws, regulations and ordinances.
If I have any concerns, who can I contact?

If you have any questions, suggestions or concerns, please reach out to Marc Inouye, our Director of Government and Public Affairs, at minouye@parpacific.com or call (808) 203-2344 (office) or (808) 352-2479 (cell).

Contact Us

If you have any questions, suggestions or concerns, please reach out to Marc Inouye, our Director of Government and Public Affairs, at minouye@parpacific.com or call (808) 203-2344 (office) or (808) 352-2479 (cell).