������Ƶ

Hawaiian Electric Co. has awarded its second contract for locally produced biofuel to Pacific Biodiesel.

The Maui-based company that processes used cooking oil into biodiesel, will supply at least 250,000 gallons of fuel to the Honolulu International Airport Emergency Power Facility. The contract is for three years with renewal options.

The contract is part of Hawaiian Electric’s move away from petroleum to renewable energy sources, which currently includes a mix of biofuels, solar, wind, hydroelectric and geothermal energy resources. The statewide goal is to achieve 40 percent renewable energy by 2030.

The new power facility, which will provide back-up power to the airport in the event of an emergency, is expected to be operational by October 2012. During normal operation, it will provide power to the electric grid for Oahu customers.

Earlier this year, Hawaiian Electric issued a contract to Aina Koa Pono to produce biofuel in the Kau region of the Big Island. The company is expected to use a range of feedstocks, such as sweet sorghum, which will then be converted into drop-in fuel for the utility’s generators.

The contracted price for the Aina Koa Pono fuel, which will only be used on the Big Island, is significantly higher than the cost of petroleum. Therefore, Hawaiian Electric hopes to spread the cost throughout Oahu customers as well, which would add less than $2 to an average residential electric bill. Otherwise the premium for the biofuel could increase this surcharge for Big Island residents 10-fold.

Biofuels have attracted criticism for being too expensive and also taking up needed land to produce fuel for transportation needs as opposed to electricity needs, for which there are a range of renewable energy sources. The latter is not an issue for Pacific Biodesel, which is using used cooking oil, as opposed to agricultural products.

The contracted price of Pacific Biodiesel’s fuel was not disclosed, but Hawaiian Electric spokesman Peter Rosegg said that “it’s a good contract for customers and it’s a good contract for our state.” Another contract is expected to be announced soon, according to Rosegg.

Both the Pacific Biodiesel and Aina Koa Pono contracts still need to be approved by the Public Utilities Commission.