Hawaii PUC rejects PPA for biomass power plant

The Hawaii Public Utilities Fee on Might 23 rejected an amended energy buy settlement (PPA) between Hawaii Electrical Mild Co. Inc. (HELCO) and Hu Honua Bioenergy LLC, the developer of practically full 30 megawatt (MW) biomass energy plant.

In its order denying approval of the amended PPA, the PUC claims that the undertaking would ends in vital greenhouse gasoline (GHG) emissions and stated that Hu Honua’s proposed dedication to sequester extra GHG emissions than are produced on the plant “depends on speculative assumptions and unsupported assertions.” The order goes on to say that the PUC just isn’t satisfied that the undertaking will scale back GHG emission and has issues concerning the doubtlessly vital long-term environmental and public well being impacts of the undertaking if the amended PPA is accredited. The PUC additionally raised issues associated to prices for ratepayers.

Work to develop the biomass-fired energy undertaking has been ongoing for greater than a decade, with growth of the undertaking practically full since at the very least mid-2020.

The ability is positioned on the web site of the previous Hilo Coast Energy Co. in Pepeekeo, Hawaii, which is positioned close to the jap shoreline of Hawaii’s huge island. A sugar mill was developed on the web site in 1857. An influence facility was added to the positioning in 1972 and was fired with sugarcane bagasse till sugar manufacturing resulted in 1994. The facility facility continued to function by way of 2004 however was fired with coal moderately than bagasse. Hu Honau started work to refurbish the plant to provide biomass-based power greater than a decade in the past, with plans to gas the power with domestically grown biomass, together with eucalyptus.

The PUC accredited a PPA between HELCO and Hu Honua in late 2013. The undertaking nonetheless confronted growth delays and authorized challenges. HELCO introduced plans to terminate that PPA in 2016 because of these delays. Hu Honua in 2017 introduced that it had reached an settlement with HELCO for an amended PPA, which was accredited by the PUC later that 12 months. The PPA was quickly challenged by an environmental group. The authorized problem reached the Hawaii Supreme Court docket, and the courtroom in 2019 rejected the PPA, ruling that the PUC was required to expressly take into account the discount of GHG emissions in its resolution making. In June 2019, the PUC re-opened a docket associated to the PPA. In mid-2022 the PUC issued an order figuring out that HELCO had not sufficiently supported its request for a waiver of the aggressive bidding course of for the Hu Honua facility. Such a waiver had beforehand been accredited for the undertaking, however the PUC concluded that that approval had been voided by the Supreme Court docket ruling. Authorized and regulatory wrangling over the PPA continued by way of the spring of 2022, with the PUC handing down its resolution to disclaim the amended PPA on Might 23.

Commissioner Leodoloff R. Asuncion, Jr., filed a dissent of the PUC’s resolution, arguing that “the proof clearly establishes that the candidates have met their burden in displaying that the undertaking will end in a major discount in GHG emissions over the course of the 30-year amended PPA time period, and consequently, that the prices of the amended PPA are cheap in gentle of the potential for GHG emissions.”

A full copy of the PUC’s resolution and Leodoloff’s dissent is out there on the PUC web site.