Hawaiian Electric Co. and Maui-based Pacific Biodiesel Technologies have signed a contract for the biofuel company to supply biodiesel for generators on Oahu.

Pacific Biodiesel Technologies will provide waste cooking oil and other local feedstocks to be used at the 110-megawatt power plant at Campbell Industrial Park as well as other Oahu power plants if needed.      

The two-year contract will go into effect November 2015.

 Pacific Biodiesel Technologies will provide a minimum of 2 million and up to 3 million gallons per year to HECO. The contract is waiting approval from the Public Utilities Commission.

The plant at Campbell Industrial Park is currently using biodiesel processed from Iowa-based Renewable Energy Group Inc.

The contract with the local firm comes with a reduced price, said Alan Oshima, Hawaiian Electric president and CEO.

“This new contract accomplishes our goal of using locally produced biofuel to the greatest extent possible,” Oshima said. “Biodiesel for the Campbell Industrial Park plant will come from Pacific Biodiesel’s recently commissioned Hawaii Island refinery at a lower price than we now pay for mainland supplied biodiesel.”

The price with the new contract is 13 percent lower overall, said HECO in an email.

The contract with HECO provides a secure source of revenue for operations at Pacific Biodiesel Technologies Big Island facility, said Robert King, president of Pacific Biodiesel.

“With this new contract, Hawaiian Electric will be purchasing approximately half our production volume,” King said, “ensuring the continuous operation of the Keaau facility.”